Arque Capital Ltd’s FINRA membership is cancelled as a result of the firm not having paid its dues, fees and other charges
Although the FINRA Enforcement team was found to have been in error in contending “that there are limited defences in a FINRA Rule 9553 proceeding”, the hearing officer found that the respondent in this case failed to demonstrate that:
- FINRA’s notice of withdrawal was not proper under the Exchange Act;
- the notice had no effective value;
- FINRA had “unclean hands”;
- the purpose underlying the respondent’s contract with FINRA was frustrated by FINRA.
The firm has been ordered to pay FINRA’s costs connected to the hearing.
Note that this is an OHO Decision and not an AWC
Exchange Act Section 15(b) FINRA Rule 9553
Former securities representative barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
Former securities representative barred for allegedly failing to provide information and documents requested by FINRA
FINRA Rule 2010 FINRA Rule 8210
Benchmark Company censured and fined for alleged failings connected to material non-public information
The firm’s supervisory system was not reasonably designed “to restrict the flow of potentially material non-public research information between the research department and sales and trading personnel or prevent the selective dissemination of potentially material non-public research information to certain customers.”
Research notes were sent by email to all firm personnel who then were permitted to distribute the notes to customers and potential customers. 11 of these research notes were issued in advance of the firm’s official research report and “contained potentially material information.”
FINRA Rule 2010 FINRA Rule 2241 FINRA Rule 3110 FINRA Rule 5280
Securities representative suspended and fined for allegedly entering the incorrect representative code in the firm’s trading system
The representative entered into an agreement with a retired representative and fulfilled his obligations under this, but overrode the firm’s system for 311 trades, which he erroneously believed the agreement did not apply to.
FINRA Rule 2010 FINRA Rule 4511
Former registered person suspended for allegedly failing to disclose a felony charge on Form U4
In addition the non-public personal information of over 200 customers was improperly removed and retained by the registered person in anticipation of leaving a former employer.
FINRA By-Laws, Article V, Section 2 FINRA Rule 1122 FINRA Rule 2010
Former products representative barred for allegedly failing to provide information and documents requested by FINRA
FINRA Rule 2010 FINRA Rule 8210
M1 Finance censured and fined for alleged document distribution to retail customers that contained misrepresentations and violated advertising rule content standards
The documents containing the misleading statements were distributed to more than 1.5m retail investors. A restitution of $736,917.86 plus interest has been ordered.
Also covered by GRIP in a separate article.
FINRA Rule 2010 FINRA Rule 2210
Sogo Capital censured and fined for alleged document distribution to retail customers that contained misrepresentations and violated advertising rule content standards
The documents containing the misleading statements were distributed to more than 17,000 retail investors. A restitution of $104,767.25 plus interest has been ordered.
Also covered by GRIP in a separate article.
FINRA Rule 2010 FINRA Rule 2210
Open to the Public Investing censured and fined for alleged document distribution to retail customers that contained misrepresentations and violated advertising rule content standards
The documents containing the misleading statements were distributed to more than 1.5m retail investors. A restitution of $28,123.75 plus interest has been ordered.
Also covered by GRIP in a separate article.
FINRA Rule 2010 FINRA Rule 2210
Windmill Group censured and fined for allegedly charging excessive commissions
Two customers were charged “a total of $8,375 in excessive commissions on 49 equity transactions”.
The firm also did not have in place a supervisory system reasonably designed to ensure compliance with fair pricing requirements. There was no description of “the supervisory steps involved in the firm’s daily reviews of all executed transactions” and the firm’s WSPs “did not state what factors should be considered when determining the fairness of commissions or how the daily reviews were to be documented”.
A restitution of $8,375.37 plus interest has been ordered. The firm has also consented to the imposition of an undertaking requiring the firm to certify in writing that the issues identified have been remediated.
FINRA Rule 2010 FINRA Rule 3110
SoFI Securities censured and fined for alleged document distribution to retail customers that contained misrepresentations and violated advertising rule content standards
The documents containing the misleading statements were distributed to more than two million retail investors. A restitution of $198,282.39 plus interest has been ordered.
Also covered by GRIP in a separate article.
FINRA Rule 2010 FINRA Rule 2210
Securities representative barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
Securities representative suspended and fined for alleged discretionary trading without written authorization from customers
The representative also failed to disclose three compromises with creditors in form U4.
FINRA By-Laws Article V Section 2 FINRA Rule 1122 FINRA Rule 2010 FINRA Rule 3260
Former securities representative barred for allegedly cheating during an exam
The representative retrieved his phone from his car and “accessed materials on his phone relevant to the Series 7 test he was taking”.
FINRA Rule 1210.05 FINRA Rule 2010
SRT Securities censured and fined for alleged compliance failings connected to outside business activity
When approving outside business activity by its registered representatives the firm did not evaluate whether the activities:
- should be restricted or prohibited;
- would interfere or compromise the representatives’ responsibilities to the firm and its customers;
- should be treated as outside securities activities and recorded on the firm’s books and records
The firm has consented to the imposition of an undertaking requiring it to certify in writing that the issues identified have been remediated.
FINRA Rule 2010 FINRA Rule 3110 FINRA Rule 3270 FINRA Rule 3270.01 FINRA Rule 3280
Products representative charged with alleged unsuitable mutual fund trading
The representative “purposefully evaded and circumvented” the firm’s supervisory procedures by failing to complete and submit the required forms for at least 429 transactions.
Note that this is a complaint and not an AWC
FINRA Rule 2010 FINRA Rule 2111
Former securities representative suspended for alleged excessive and unsuitable trading in two customer accounts
FINRA Rule 2010 FINRA Rule 2111
HRT Financial censured and fined for allegedly over-tendering company shares
The firm “relied solely on the long equities position that it held in the aggregation unit that was involved in the tender offer” when calculating its net long position in the security. Because of this the firm over-tendered 185,080 company shares in a partial tender offer resulting in ill-gotten gains.
A disgorgement of $233,445 has been ordered in addition to the censure and fine.
Exchange Act Rule 14e-4 FINRA Rule 2010 FINRA Rule 3110
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |