NYSE Regulation Inc. today announced it has censured and fined Deutsche Bank Securities Inc. a total of US$1.275 million in two separate disciplinary actions.
The first action, which resulted in the imposition of a censure and US$950,000 fine, concerns violations relating to the firm’s failure to provide required conflict of interest disclosures on published research reports. The other action concerns supervisory and control deficiencies in connection with a former employee’s misuse of password protected data at another firm, and in connection with DBSI’s order entry, audit trail and prime brokerage business activities. The firm consented to the imposition by NYSE of a censure and a US$325,000 fine in this second proceeding.
In settling these charges brought by NYSE Regulation, Deutsche Bank Securities neither admitted nor denied guilt.
“Accurate and adequate conflict of interest disclosures on published research reports are essential so that the investing public can make informed decisions about the objectivity and independence of the recommendations,” said Susan Merrill, chief of enforcement, NYSE Regulation. “Firms must ensure that there are adequate infrastructure and procedures in place so the required conflict of interest disclosures are up-to-date and accurate.”