A U.S. financial industry regulator said on Monday it has fined brokerage firm Oppenheimer & Co and its head municipal securities trader for overcharging municipal bond customers. The Financial Industry Regulatory Authority, or FINRA, an independent body that oversees brokerage firms, said it would fine Oppenheimer $675,000 and order restitution to customers of more than $246,000 for 89 transactions from July 1, 2008, through June 30, 2009. FINRA also said it would fine head trader David Sirianni $100,000 and suspend him for 60 days. "FINRA has no tolerance for firms or individuals who charge customers excessive markups. Oppenheimer charged customers unfair prices in numerous municipal securities transactions and failed to properly supervise municipal securities transactions with its customers," said Thomas Gira, FINRA's head of market regulation. Price discovery in the municipal bond market is not as transparent as in the stock market where live prices are instantaneously available
↧
