NEWARK, N.J. (Legal Newsline) – The New Jersey Bureau of Securities has fined Regal Securities $10,000 over its failure to reasonably supervise two employees at one of its offices.
Though neither employee was registered with the NJBOS as an agent, Kenneth D. Franklin and Michael J. Kelly made a combined total of approximately 555 transactions for investors during 2005 and 2006 at the firm's office in Brick, the attorney general's office said.
Illinois-based Regal Securities has since implemented a computerized broker surveillance system to monitor its employees. Franklin and Kelly both paid civil penalties for the unregistered activity.
"Financial firms must exercise proper supervision of their employees, and ensuring representatives are registered is fundamental to protecting clients," Attorney General Paula Dow said.