SWS Group Announces Settlement With FINRA

SWS Group, Inc. SWS today announced that its principal broker-dealer subsidiary, Southwest Securities, Inc., has entered into a settlement with the Financial Industry Regulatory Authority (FINRA), resolving an investigation by FINRA of risk management of the firm's Clearing Services operation. FINRA is a self-regulatory organization that serves as Southwest Securities' primary regulator. Under the terms of a Letter of Acceptance, Waiver and Consent, and without admitting or denying FINRA's findings, Southwest Securities consented to a censure and the entry of certain findings relating to risk management of correspondent clearing relationships and trading activity. There were no allegations of monetary harm to investors. Southwest Securities also agreed to pay a fine of $650,000, and to certain undertakings. The amount of the settlement has been provided for with reserves previously set aside by SWS Group.