FINRA fined and censured Pacific Palisades firm Roselaine Securities for deficient supervisory systems relative to outside business activities, private securities transactions, and associated conflicts of interest. Regulators also disciplined Roselaine for failing to search its internal records in response to information requests from the federal government's Financial Crimes Enforcement Network of the Department of Treasury.
According to FINRA's AWC #2020065163001, Roselaine Securities aka Daley & Tang Securities (CRD #171237), which became a FINRA and SEC member firm in 2015, failed to establish, maintain, and enforce an adequate supervisory system ever since first coming into the securities industry.
Specifically, regulators point out that the firm's supervisory failures unreasonably failed to identify anyone to whom its principals with outside business interests were required to disclose such interests. This means that even when Roselaine's staff did disclose outside business activities and private securities transactions to the firm, Roselaine's deficient supervisory systems prevented the firm from identifying anyone, including potential clients, who should be informed about those outside business activities.
FINRA also cited Roselaine for failing to search its books and records in response to requests from the Department of Treasury's Financial Crimes Enforcement Network pursuant to the government's routine search for specified illegal activity, such as money laundering and terrorist financing. According to the documents, this violation began in 2015—when the firm joined FINRA—and persisted through 2021.
If you invested with Roselaine Securities in Pacific Palisades, California, or with any other FINRA-member firm whose failure to disclose conflicts of interests such as outside business activities, perhaps exacerbated by the brokerage firm's lax or deficient supervisory policies, have proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.