FINRA fines Cowen and Company for alleged rule violations

​The Financial Industry Regulatory Authority (FINRA) has imposed a fine on Cowen and Company for alleged rule violations related to a partial tender offer in 2022. Cowen violated Securities Exchange Act Rule 14e-4(b)(1) and FINRA Rule 2010 by over-tendering 100,000 shares in a partial tender offer of Company 1.

From October 2022 through May 2024, Cowen also violated FINRA Rules 3110 and 2010 by failing to maintain a supervisory system reasonably designed to ensure compliance with Exchange Act Rule 14e-4. As a result, Cowen was censured and fined $80,000, with $40,000 payable to FINRA and the remainder allocated to NYSE Arca, Inc.

Cowen, a FINRA member since 1978, merged with TD Securities (USA) LLC in December 2024, with TD Securities becoming the successor entity. Cowen subsequently filed a Uniform Request for Broker Dealer Withdrawal (Form BDW) in December 2024, which became effective in February 2025. At the time of the merger, Cowen had 274 registered representatives and 12 branch offices, while TD Securities has approximately 1,600 registered representatives and 22 branch offices.