Securities Lawyers Blog
A FINRA disciplinary action against a brokerage firm resolves the regulator’s case, not the customers’ losses. Investors who held accounts at Janney Montgomery Scott LLC during the periods covered by the actions below may have claims of their own. The securities arbitration attorneys at Gana Weinstein LLP represent investors in FINRA arbitration against brokerage firms and can review your accounts, free of charge, to tell you whether the conduct FINRA described affected you.
Janney Montgomery Scott is a full-service wealth management, capital markets, and asset management firm that offers brokerage, advisory, retirement planning, and investment banking services to individuals, families, businesses, and institutions. Tracing its roots to 1832 and based in Philadelphia, the firm holds the second oldest membership on the New York Stock Exchange, operates about 135 offices across the United States, and was acquired from Penn Mutual by KKR in 2024.
Janney Montgomery Scott LLC – By the Numbers:
- CRD #: 463
- Regulatory Events: 54
- Arbitration Events: 67
- Broker Employees: 1,527
Janney Montgomery Scott LLC – Investment Advisors:
- SEC #: 7258
- Assets Under Management: $110,113,690,076
- ADV Form Employee: 2,404
Janney Montgomery Scott LLC – In the News:
FINRA v. Janney Montgomery Scott LLC (Case #2022074617402) – Between July 2019 and May 2021, Janney failed to appropriately identify transactions in new issue securities reported to the Municipal Securities Rulemaking Board (MSRB), which additionally caused the firm’s systems to report inaccurate times of trade for those transactions, in violation of MSRB Rule G-14. During the same period, the firm failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with MSRB reporting rules, in violation of MSRB Rule G-27. In addition, between March 2022 and October 2023, Janney violated the Trade Reporting and Compliance Engine (TRACE) reporting rules by failing to report, overreporting, or reporting inaccurately certain transactions to TRACE. During the same period, the firm failed to establish, maintain, and enforce a supervisory system, including WSPs, reasonably designed to achieve compliance with TRACE reporting rules, in violation of FINRA Rules 3110 and 2010.
FINRA v. Janney Montgomery Scott LLC (Case #2016051156903) – From December 2013 through December 2016, Janney failed to reasonably supervise two registered representatives who recommended that their customers invest an unsuitably high percentage of their assets in energy-sector securities in violation of NASD Rule 3010 and FINRA Rules 3110 and 2010.
FINRA v. Janney Montgomery Scott LLC (Case #2017054220101) – Between October 1, 2014, and April 4, 2018, JANY submitted approximately 6.6 million inaccurate or incomplete Reportable Order Events (ROEs) to OATS. Specifically, JANY transmitted 2,860,187 Desk Reports that contained an inaccurate Desk Type code and 3,755,778 new order type events that failed to report an Information Barrier ID, in violation of FINRA Rules 7450 and 2010. In addition, JANY failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with its OATS reporting obligations, in violation of NASD Rule 3010, FINRA Rule 3110, and FINRA Rule 2010.
The FINRA actions described above involve Janney Montgomery Scott LLC itself, and investors whose losses are connected to the conduct FINRA identified may have claims against the firm. Gana Weinstein LLP offers free consultations and we welcome all inquiries.