According to the regulator, paperwork provided by FINRAâs Kansas City District office to the SECâs regional office in Chicago was found to have been altered hours before they were handed over.
The alteration of the documents, which were three records of staff meeting minutes, was found to have been the third time in eight years that FINRA or a representative from the body had committed such an act.
Gerald Hodgkins, associate director of the SECâs Division of Enforcement, said that the law stipulates how FINRA needs to provide documents which are both âcomplete and accurateâ.
âAthough FINRA has previously taken steps to improve compliance, those enhancements did not go far enough to prevent the document production failure that occurred in its Kansas City District Office,â he said.
FINRA did not admit or deny the findings of the SECâs order but consented to order an independent consultation to review its policies relating to the security of documents.
By Jim Ottewill