NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Brecek & Young Advisors, Inc.
AWC/2008011574401

The Firm failed to have a supervisory system, including written supervisory procedures, reasonably designed to ensure that its registered representatives charged its customers reasonable markups or markdowns and commissions on equity securities transactions (Commission Policy). The Firm did not provide sufficient training or guidance to its registered representatives, its trading department or its Office of Supervisory Jurisdiction (OSJ) managers to detect violations of the firm’s Commission Policy, nor did it adequately provide for the use of exception reports to conduct a review of commission charges its registered representatives assessed. The Firm failed to establish adequate processes or have documented written supervisory procedures as to how it would handle a violation of the Commission Policy.

Brecek & Young Advisors, Inc. : Censured; Fined $25,000

Tags: Mark-Up Mark-Down