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.

Seton Securities Group, Inc.
AWC/2009016215601

The Firm failed to maintain and preserve all of its business-related electronic communications transmitted by or to individuals affiliated with a branch office. The Firm relied on individuals affiliated with the branch office to forward or copy those communications to the firm’s home office for retention, but not all of the branch office’s business-related emails were forwarded to the home office. The electronic communications that were not forwarded or copied to the firm’s home office were not retained. The Firm did not establish, maintain and enforce a supervisory system and written procedures reasonably designed to achieve compliance with the rules and regulations applicable to the retention of businessrelated electronic communications because, among other things, the system relied on the firm’s registered representatives to forward communications to the home office. The Firm's procedures did not provide for any reasonable follow-up or review to ensure that copies of all email communications were, in fact, being captured and maintained.

Seton Securities Group, Inc.: Censured; Fined $65,000; Aagreed to review its supervisory system and procedures concerning the preservation of electronic communications for compliance with FINRA rules and federal securities laws and regulations, and to certify in writing to FINRA that it has completed its review and has in place systems and procedures reasonably designed to achieve compliance with the laws, regulations and rules concerning the preservation of electronic communications.

Tags: Electronic Communications  Email