The US Securities and Exchange Commission has charged Canaccord Genuity LLC, a New York broker-dealer, with helping people to trade in dozens of thinly-traded securities without previously conducting a proper review required by federal securities laws for the purposes of protecting investors.

According to the SEC's order, Canaccord published quotes and made markets in dozens of over-the-counter (OTC) securities without performing the review required by Exchange Act Rule 15c2-11, which requires broker-dealers to have a reasonable basis for believing in the accuracy of the prospectus and other information made available by the issuer of the securities.

The order says that Canaccord was responsible for obtaining and reviewing the information required by Rule 15c2-11 and filling out and signing the necessary forms, but that it delegated this responsibility to a compliance associate. He or she had no trading experience and no formal training to conduct the review, such as training related to the analysis of financial statements and other information. Canaccord has since revised and improved its policies and procedures with respect to Rule 15c2-11.