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REGULATORY CASES OF NOTE
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NASD REGULATION, INC. |
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OFFER OF SETTLEMENT |
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| TAGLICH BROTHERS,
INC. and MICHAEL NICHOLAS TAGLICH (Registered Principal) NASD Case #CAF010028
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NOTE: OFFERS OF SETTLEMENT and AWCs are made without admitting or denying the allegations, but consenting to the described sanctions and to the entry of findings Introducing firm received portion of spread on markets made at its request by clearing firm. Did not disclose payment to customers. Failed to properly disclose capacity and execution times. |
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Taglich Bros.'s clearing firm made markets in securities requested by its introducing broker-dealer customer. The clearing firm agreed to pay Taglich Bros. a portion of the the spread on some of the executed trades. The portion paid by the clearing firm would be split between Taglich Bros. and the registered representative who generated the trade. The RR also received a regular commission on the trade. NASD cited the firm for not disclosing on confirmations theamount of the paid spread. In addition, the firm failed to correct the confirmation slips to reflect the additional compensation, and the confirmations failed to state clearly whether the firm or the clearing firm was acting in a principal or agency capacity. NASD also found that the firm failed to detect and correct this ambiguity on confirmation slips for these trades. Moreover, NASD found that the firm failed to create and maintain order tickets that reflected the times the orders were received and executed. Taglich Brothers, Inc. and
Michael Nicholas Taglich submitted an Offer of Settlement in which they
were censured and fined $35,000, jointly and severally. In addition, the
firm was fined an additional $5,000 and Taglich was required to requalify
by exam as a general securities principal (Series 24) within 90 days of
issuance of the Order Accepting the Offer of Settlement. If Taglich fails
to requalify, he will be prohibited from serving in a principal capacity
with any firm until he successfully requalifies. |
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RRBDLAW.COM AND SECURITIES INDUSTRY COMMENTATOR™ © 2004 BILL SINGER THE ARTICLES PUBLISHED HERE REPRESENT THE PERSONAL VIEWS OF THE AUTHOR, AND NOT NECESSARILY THE VIEWS OF ANY LAW FIRM OR ORGANIZATION WITH WHICH HE MAY BE AFFILIATED. ALL STATEMENTS MADE IN THESE ARTICLES ARE FOR GENERAL INFORMATION ONLY AND ARE NOT INTENDED TO PROVIDE, NOR SHOULD THEY BE RELIED ON AS, LEGAL ADVICE. READERS MUST CONSULT WITH QUALIFIED LEGAL COUNSEL BEFORE RELYING UPON ANY CONTENT CONTAINED HEREIN. STATEMENTS MADE IN THESE ARTICLES MAY BE INCORRECT FOR YOUR JURISDICTION OR AT THE TIME WHEN YOU READ SUCH STATEMENTS THE UNDERLYING RULES, REGULATIONS AND/OR DECISIONS MAY NO LONGER BE CONTROLLING OR PERSUASIVE AS A MATTER OF LAW OR INTERPRETATION. Telephone: 917-520-2836 Fax at 720-559-2800 E-mail to bsinger@rrbdlaw.com FOR DETAILS ABOUT MR. SINGER, PLEASE READ HIS ONLINE BIOGRAPHY 
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