Finra Fines Goldman Sachs $650,000
In a news release, the Financial Industry Regulatory Authority (FINRA) announced that it had fined Goldman Sachs & Company $650,000 for failing to disclose that two of its brokers had received “Wells Notices” from the Securities Exchange Commission (SEC) concerning an offering of a synthetic collateralized debt obligation (CDO), called ABACUS 2007-ACI. A “Wells Notice” is a letter from the SEC notifying individuals or firms that it is intending to bring an enforcement action against them. It allows the individual or firm the opportunity to respond regarding why an action should not be brought.
FINRA concluded that Goldman Sachs had inadequate supervisory procedures, manuals, policies and systems in place to comply with disclosure requirements. Goldman was ordered to review its supervisory procedures and systems regarding disclosure reporting and to implement and document any and all necessary remedial changes.