The Financial Industry Regulatory Authority (FINRA) has imposed a £250,000 fine on BofA Securities, Inc. for multiple violations related to its trade reporting obligations, it was revealed this week.
BofA Fined £250,000 by FINRA
The fine stems from lapses identified between February 2018 and June 2023.
BofA Securities reportedly failed to meet the requirements of the Trade Reporting and Compliance Engine (TRACE) on several counts.
According to FINRA, the firm failed to report approximately 5,200 transactions in TRACE-eligible securities in a timely manner. This included late reporting of agency debt, securitised products, and corporate debt transactions, violating FINRA Rules 6730(a) and 2010.
Further, BofA is said to have failed to include a required modifier in around 57,000 TRACE reports involving US Treasury securities. This omission, covering February 2018 to June 2022, breached FINRA Rules 6730(a) and (d).
Compounding these infractions, FINRA noted deficiencies in BofA’s supervisory systems, which were deemed inadequate for ensuring compliance with TRACE reporting standards.
The regulator said the firm only took remedial steps, such as adopting new internal systems and compliance measures, after significant delays.
The fine, alongside a formal censure, was agreed upon through a settlement process. BofA did not admit or deny the findings but has accepted the sanctions and committed to corrective actions.
