WASHINGTON (AP) — The brokerage industry’s self-policing organization has been ordered to improve its document procedures after allegedly providing altered records to the Securities and Exchange Commission for an inspection in 2008.
The Financial Industry Regulatory Authority’s Kansas City office altered the documents, the SEC said Thursday in announcing the order.
Known as FINRA, the 4,500-member organization agreed to hire an independent consultant to review its policies for handling documents. The SEC said the 2008 incident was the third time in eight years that FINRA employees had given the SEC doctored or misleading documents.
FINRA didn’t admit or deny the allegations. The organization has been criticized for failing to uncover Bernard Madoff’s massive Ponzi scheme and the alleged fraud by R. Allen Stanford.