As part of its settlement with the Financial Industry Regulatory Authority (FINRA), Landolt Securities, Inc has agreed to pay a $25,000 fine.。

Since at least March 2021, Landolt Securities has failed to establish, maintain and enforce a reasonable oversight regime, including a written oversight procedure (WSP), to oversee the electronic communications of its registered representatives.。

The company's WSP did not identify the person responsible for reviewing the e-mails and did not say how often they were reviewed.。The WSP did not provide reasonable guidance on how to conduct the review and address issues identified in the review of electronic communications。

In addition, the WSP does not require that the review be conducted or supervised by the head of registration.。

In addition, the WSP does not include any criteria for identifying potentially problematic emails, nor does it specify which issues or red flags the reviewer should review, or explain whether and how any potentially problematic emails should be escalated for further review.。

Landolt Securities email censorship is also unreasonable in practice。The examination is not carried out or supervised by a registered supervisor。The company also does not regularly review, evaluate, or update the keywords the company uses to flag emails for review。

As a result, Landolt Securities violated Financial Industry Regulatory Authority rules 3110 and 2010.。

In addition to the fine, the company agreed to accept a censure。