The Monetary Trade Regulatory Authority has fined H2C Securities $250,000 for failing to protect and assessment over 1.25 million business-related digital communications on 4 platforms.
In response to FINRA’s order, from at the very least January 2013 to June 2021, H2C Securities did not protect and assessment the digital communications, the overwhelming majority of which had been mass advertising and marketing emails.
Throughout this era, “the agency’s supervisory system, together with written supervisory procedures, was not fairly designed to realize compliance with the agency’s obligation to seize, retain, and assessment communications despatched or obtained utilizing these digital communication platforms,” FINRA’s order states.
The business-related digital communications included inner and exterior emails, instantaneous messages, mass advertising and marketing supplies, and paperwork requiring prospects’ digital signatures.
