Goldman Sachs has been fined at $ 250,000 and was controlled by the Financial Industry Regulatory Authority (FINRA) for violations of multiple rules, including failure to address conflict of interest in a preliminary general offer 2021 and allow employees who are not registered to conduct investment banking services.
According to Vin, in July 2021, Goldman worked as a major leader of the subscription of the public subscription that raised about $ 700 million.
About 13.5 % of revenues, $ 96 million, was used to pay a loan from a subsidiary Goldman.
This constitutes a conflict of interests, and requires an independent qualified author’s involvement (QIU) to oversee the presentation.
The organizer added that he did not participate such QIU, which means that the bank failed to meet the requirements of due care.
Between May 2021 and March 2022, Goldman also allowed four individuals to perform investment banks without being recorded at the Finra.
The organizer found that the supervisory procedures of the company are not sufficient, noting that although it followed the late records, it failed to escalate or treat them immediately.
Finra concluded that the bank violated multiple rules, governing conflicts of interest, registration and supervisory systems.
Before Goldman Sachs, the results without recognizing or rejecting allegations. The settlement closes the Finra investigation of the matter, but the blame and the fine are now part of the company’s organizational registry.
This procedure follows a routine examination of the Finra and highlights the continuous organizational audit of traditional subscriptions and overseeing compliance in the investment banking services sector.