Apex Pays Finra $3.2 Million to Settle Securities Lending Lapses

Apex Clearing Corp. will pay $3.2 million to settle Financial Industry Regulatory Authority allegations it failed to properly inform retail customers about the risks of lending securities and also didn’t pay them proper fees, the regulator said Tuesday.

It’s the first time Finra dinged a firm for violating a customer protection rule about permissible use of the client’s securities, the regulator said.

Apex will pay the fine without admitting or denying the allegations.

“It is unreasonable to expect a customer to take on risks and the potential financial consequences of securities lending with no financial upside,” said Bill St. Louis, ...