A broker-dealer agreed to pay $50,000 to settle FINRA charges that it failed to "establish, document, and maintain" a system of adequate risk management controls and supervisory procedures designed to manage financial and regulatory risks regarding market access.
According to a Letter of Acceptance, Waiver and Consent, J.V.B. Financial Group, LLC (the "firm") neglected to have sufficient controls and supervisory procedures designed to prevent orders that went over preset capital thresholds. FINRA alleged that the firm lacked any automated pre-trade controls to stop the entry of orders that went over capital limits, resulting in at least four capital limit breaches.
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