FINRA Fines Intesa Sanpaolo IMI Securities $125,000 for Reporting and Confirmation Failures

The Financial Industry Regulatory Authority (FINRA) has censured and fined Intesa Sanpaolo IMI Securities Corp. $125,000 after finding the firm failed to properly report thousands of fixed-income transactions and issued incomplete customer trade confirmations over a multi-year period. The firm accepted the findings without admitting or denying them.

FINRA stated that between July 2018 and April 2024, the broker either failed to report or inaccurately reported more than 12,000 fixed-income transactions to the Trade Reporting and Compliance Engine (TRACE). These failures compromised the transparency and integrity of TRACE, which provides market participants with crucial pricing information.

The reporting failures included instances where the firm incorrectly reported its execution capacity. Furthermore, a human error led to the complete non-reporting of more than 4,000 transactions that involved a non-member affiliate.

Separately, the firm was found to have issued more than 11,000 customer confirmations between July 2018 and September 2024 that omitted the security's price. FINRA determined that this omission was caused by a coding error.

FINRA ruled that the failure to disclose this essential transaction term breached both SEC Rule 10b-10 and FINRA Rule 2232, which require clear disclosure of transaction details. The regulator also found the firm guilty of supervisory lapses, stating that Intesa Sanpaolo IMI Securities violated Rule 3110 by failing to maintain or enforce adequate procedures to ensure the accuracy of the confirmations.