DALLAS, March 7, 2011 /PRNewswire/ -- Southwest Securities, Inc. (Southwest) has entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to settle allegations involving violations of Municipal Securities Rulemaking Board (MSRB) rules between October 2006 and April 2009.
Under the AWC, Southwest accepts and consents to FINRA's findings without admitting or denying them. Southwest also agrees to a censure and payment of a $500,000 fine and written certification by an officer of Southwest that the firm has reviewed its procedures with respect to all applicable MSRB rules and has established systems and procedures designed to achieve compliance with them. The AWC was executed on the condition that FINRA not bring any future actions against Southwest alleging violations based on the same factual findings described in the AWC.
The amount of the settlement has been provided for with reserves previously set aside by SWS Group, Inc., the parent company of Southwest Securities, Inc.
Under the AWC, FINRA finds that between October 2006 and April 2009 Southwest violated MSRB Rule G-38 by using unaffiliated individuals to solicit municipal securities business on behalf of the firm; Rule G-36 by failing to timely file official statements and Forms G-36 (OS) and advance refunding documents and Forms G-36 (ARD); Rule G-14 by failing to accurately report certain municipal securities transactions to the MSRB; and Rule G-27 by failing to adopt, maintain and enforce procedures reasonably designed to ensure compliance with applicable MSRB rules.
"We believe this settlement is in the best interest of our firm, our shareholders and our clients," said James H. Ross, Chief Executive Officer of SWS Group.
Southwest Securities, Inc., a member of NYSE, FINRA and SIPC, provides securities brokerage, investment banking and securities clearing services to a broad range of individual, corporate, public and industry clients. The firm is a wholly owned subsidiary of SWS Group, Inc. (NYSE: SWS), a financial services holding company whose stock is listed and traded on the New York Stock Exchange under the symbol, SWS.
SOURCE Southwest Securities, Inc.