Lack of Required Transparency in Financial Records and Inaccurate Customer Reserve Computations
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) today announced that it has fined Deutsche Bank Securities, Inc. (DBSI) $6.5 million and censured the firm for serious financial and operational deficiencies primarily related to its enhanced lending program. The violations, which were originally identified during a 2009 examination, included lack of transparency in the firm’s financial records and inaccurate calculations resulting in overstated capitalization and inadequate customer reserves.
Brad Bennett, FINRA Executive Vice President and Chief of Enforcement, said, “First and foremost, a brokerage firm must ensure that its customer assets are protected. DBSI’s financial accounting lacked the transparency and accuracy necessary to enable FINRA to oversee the firm and to protect customer assets.”