Oppenheimer & Co. Inc. has agreed to pay a fine of $500,000 as part of a settlement with the FINRA.

During the period from 2012 to 2017, Oppenheimer failed to reasonably supervise its registered representatives conducting transactions with product issuers on behalf of the firm's clients (i.e., direct business transactions or offshore securities transactions), violating NASD Rule 3010 and FINRA Rules 3110 and 2010.

Oppenheimer failed to take reasonable measures to ensure that direct business transactions were recorded in the firm's books and records, resulting in the firm's failure to process approximately 490,000 transactions (including dividend reinvestments) involving over 14,000 customers. This failure to properly document transactions impeded the identification of potential sales practice violations through exception reports, including potential unsuitable trading.

Additionally, Oppenheimer failed to ensure the collection of information related to customer investment profiles (such as customer age, investment time horizon, and liquidity needs), which is crucial for making certain suitability determinations.

As a result of these violations, Oppenheimer violated Section 17(a) of the Securities Exchange Act of 1934, Exchange Act Rule 17a-3, NASD Rule 3010, and FINRA Rules 3110, 4511, and 2010.

In addition to the $500,000 fine, the firm has also agreed to be censured.