Ausdal Financial Partners, Inc.

Allegations: AUSDAL FAILED TO RETAIN SOME EMAIL CORRESPONDENCE RELATED TO ITS BUSINESS AS A BROKER-DEALER FROM OCTOBER 2008 THROUGH JUNE 2011, IN VIOLATION OF NASD RULES 3110 AND 2110, FINRA RULE 2010, SECTION 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 1 7A-4 PROMULGATED THEREUNDER. Status: Final Sanction Detail: AUSDAL SUBMITTED A $25,000 PAYMENT TO FINRA ON 12/26/2012 Summary: ON JUNE 27, 2011, AUSDAL FINANCIAL PARTNERS, INC. (AUSDAL) DISCOVERED THAT CERTAIN E-MAIL ADDRESSES WERE NOT BEING RETAINED BY AUSDAL'S THEN THIRD-PARTY E-MAIL VENDOR. AUSDAL PROMPTLY CONTACTED THE E-MAIL VENDOR TO INQUIRE WHY E-MAILS WERE NOT BEING RETAINED. AUSDAL LEARNED THAT THE E-MAIL ADDRESSES AT ISSUE HAD NOT PROPERLY BEEN SET UP. AUSDAL PROMPTLY CONDUCTED A FIRM-WIDE UNDERTAKING TO ENSURE THAT ALL OF ITS REPRESENTATIVE'S AND ASSOCIATED PERSON'S E-MAILS WOULD BE CAPTURED BY ITS EXISTING E-MAIL VENDOR'S SYSTEMS, ON A GOING-FORWARD BASIS. AUSDAL WAS ALSO ABLE TO RE-CAPTURE A NUMBER OF THE E-MAILS FOR CERTAIN OF THE AUSDAL REPRESENTATIVES AND/OR ASSOCIATED PERSONNEL THAT HAD NOT BEEN CAPTURED AND RETAINED; THIS WAS MADE POSSIBLE BECAUSE THESE CERTAIN INDIVIDUALS HAD MAINTAINED E-MAILS ON THEIR PERSONAL HARD DRIVES. AUSDAL SELF-REPORTED THIS ISSUE TO FINRA, IN WRITING, ON JULY 15, 2011. AUSDAL CHANGED E-MAIL VENDORS AS OF OCTOBER 28, 2011. ALL AUSDAL REPRESENTATIVES AND ASSOCIATED PERSONS WERE REQUIRED TO USE THE NEW E-MAIL VENDOR'S PLATFORM AS OF JANUARY 1, 2012. AUSDAL REPRESENTATIVES WERE ADVISED OF THIS REQUIREMENT AT THE AUSDAL ANNUAL COMPLIANCE MEETINGS HELD ON OCTOBER 20, 2011 AND NOVEMBER 10, 2011. AUSDAL REPRESENTATIVES WORK DIRECTLY WITH AUSDAL'S NEW E-MAIL VENDOR TO ENSURE THAT THE REPRESENTATIVE'S AUSDAL E-MAIL ADDRESS IS SET UP PROPERLY, AND IS BEING CAPTURED AND RETAINED BY THE NEW E-MAIL VENDOR'S SYSTEM. AUSDAL, UPON RECEIVING NOTICE FROM THE E-MAIL VENDOR THAT THE AUSDAL REPRESENTATIVE'S E-MAIL ADDRESS HAS BEEN SET UP PROPERLY AND E-MAILS ARE BEING CAPTURED AND RETAINED, THEN CONDUCTS ITS OWN TESTING TO VERIFY THAT ALL REPRESENTATIVE E-MAILS ARE, IN FACT, BEING CAPTURED AND RETAINED.