According to FINRA, Colliers Securities LLC was censured and fined $55,000 for multiple failures related to municipal securities transaction reporting and customer confirmations.

The firm failed to utilize the required special condition indicator for transactions in new issue municipal securities reported to the Municipal Securities Rulemaking Board's (MSRB) Real-Time Transaction Reporting System (RTRS). As a participant in municipal securities offerings serving as sole underwriter, syndicate manager, syndicate member, selling group member, or distribution participant, the firm was required to append specific indicators when reporting. However, the firm failed to do so for approximately 5,400 List Offering Price and Takedown Transactions.

Additionally, the firm failed to disclose, or accurately disclose, required mark-up and mark-down information on retail customer confirmations. Approximately 50 confirmations for municipal securities transactions and approximately 50 confirmations for corporate debt securities transactions either did not include or inaccurately disclosed the mark-up or mark-down information. These failures stemmed from errors in the firm's order management system and data entry errors.

The firm became aware of the confirmation issue from FINRA in May 2023 but did not remediate the error until January 2024, an unacceptably long delay.

FINRA also found that the firm's supervisory system and procedures were not reasonably designed to achieve compliance with MSRB Rules G-14 and G-15. The procedures failed to specify what steps firm personnel should take when reviewing RTRS reports.

Mark-up and mark-down disclosure is important for investors because it allows them to understand the costs associated with their bond transactions. Following the action, the firm began conducting and documenting daily reviews of its RTRS reporting and customer confirmations, provided additional employee training, and updated its procedures.