FINRA Fines Kildare for Violating Reporting Rules

The Financial Industry Regulatory Authority has fined Kildare Capital Inc. $25,000 for failing to timely report municipal securities transactions and other rule violations.

The violations and fine were disclosed in monthly disciplinary actions that FINRA released Monday.

The Radnor, Pa.-based firm accepted the fine ­without admitting or denying the self-regulator’s findings.

Between Jan. 1 and March 31, 2009, Kildare failed to report 55 muni transactions within the 15-minute period generally required by the Municipal Securities Rulemaking Board’s Rule G-14 on transaction reporting, according to FINRA.

In addition to the late reporting, the firm failed to report the correct time of trade on 55 transactions. The trades represented 18% of the interdealer transactions that Kildare reported during the review period, FINRA said.

During the same period, Kildare failed to show the correct execution time on memorandums for 54 transactions that the firm entered into with other dealers, in violation of Rule G-8 on books and records, FINRA found.

The self-regulator also cited Kildare for lacking a supervisory system that was reasonably designed to achieve compliance with Rule G-27 on supervision and the securities laws.

Specifically, Kildare’s system lacked a detailed list of steps a supervisor must take to ensure compliance with MSRB rules as well as a means of documenting the completion of those steps.

FINRA also cited the firm for failing to enforce the written procedures it had in place.

For instance, the firm failed to access and receive its reported municipal securities transaction data through the MSRB’s Dealer Feedback Services at least once every month, as required by its procedures.

Of the $25,000 fine, $15,000 was for the trade reporting violations, $5,000 for the books and records violations, and $5,000 for the combined supervisory findings.

Kildare officials could not be reached for ­comment.

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