In the Matter of The GMS Group, LLC

The GMS Group, LLC was censured and fined $35,000 according to FINRA. It appears the firm failed to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Reg BI. The findings stated that the firm's policies and procedures failed to describe procedures for achieving compliance with the Care Obligation of Reg BI. Similarly, the firm's policies and procedures did not address Reg BI’s Conflict of Interest Obligation, providing no framework for identifying, disclosing, or mitigating, where appropriate, conflicts of interest associated with recommendations to retail customers. In addition, the firm failed to provide a framework for preventing, detecting, and promptly correcting Reg BI violations or for otherwise achieving compliance with Reg BI. The findings also stated that the firm failed to establish and maintain WSPs reasonably designed to achieve compliance with Exchange Act Rule 17a-14 obligations regarding Form CRS.

Summary generated from official Financial Industry Regulatory Authority press release