Southwest Securities, Inc. Announces Settlement With FINRA

Southwest Securities, Inc. has entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority to settle allegations involving violations of Municipal Securities Rulemaking Board rules between October 2006 and April 2009.

Under the AWC, Southwest accepts and consents to FINRA's findings without admitting or denying them. Southwest also agrees to a censure and payment of a $500,000 fine and written certification by an officer of Southwest that the firm has reviewed its procedures with respect to all applicable MSRB rules and has established systems and procedures designed to achieve compliance with them. The AWC was executed on the condition that FINRA not bring any future actions against Southwest alleging violations based on the same factual findings described in the AWC.

The amount of the settlement has been provided for with reserves previously set aside by SWS Group, Inc. SWS, the parent company of Southwest Securities, Inc.