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JP Morgan, Citigroup, others fined in US for failing to `reasonably supervise' custodial accounts for minor beneficiaries

( December 26, 2019, 17:29 GMT | Official Statement) -- MLex Summary: JP Morgan Securities, Citigroup Global Markets, Morgan Stanley, Merrill Lynch Smith Barney, Pierce, Fenner & Smith and LPL Financial were fined a total of $1.4 million for failing to "reasonably supervise" custodial accounts that provide a way to transfer property to a minor beneficiary without the need for a formal trust, the Financial Industry and Regulatory Authority said. The firms allowed customers to open Uniform Transfers to Minors Act and Uniform Gifts to Minors Act accounts, yet failed to establish, maintain, and enforce reasonable supervisory systems and procedures to track or monitor whether custodians transferred control in a timely way, Finra said. Statement follows in full. ...

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