Without admitting or denying the findings of the US federal Financial Regulatory Authority, a Los Angeles wealth-managing broker-dealership called Wedbush Securities has agreed to pay a penalty for not transmitting information to the regulator's Order Audit Trail System.

Wedbush Securities claims to be one of the nation’s leading wealth management, brokerage and advisory firms with more than 400 investment specialists dedicated to improving the financial success of HNWs.

The regulator claims that because of system-related problems that arose during the firm's transition between one third-party order management system and another, Wedbush failed to transmit information about 237,457 reportable order events to OATS on 117 business days. These unreported events accounted for one-fifth of the events about which the firm submitted data during the same period.

FINRA Rule 7450 requires regulated firms to send OATS a report, in an electronic format prescribed by FINRA, containing each applicable item of order information whenever an order is originated, received, transmitted to another department at the firm or to another firm, modified, cancelled, or executed. FINRA Rule 7460 provides that any failure to comply with Rule 7450 may be in breach of FINRA Rule 2010, which requires firms to observe high standards of commercial honour.