Former securities representative suspended and fined for allegedly failing to disclose felony charges on Form U4
FINRA Rule 1122
FINRA Rule 2010
FINRA By-Laws Article V
Open to the Public Investing censured and fined for allegedly failing to reasonably supervise finfluencer communications
The firm paid 110 individuals to promote the firm through social media platforms. The resulting finfluencer posts resulted in customers opening and funding more than 23,000 new accounts.
However, some of the social media posts contained claims that were misleading or unwarranted. In particular the posts claimed that the firm offered commission free trades, but did not disclose the other fees that could apply to the trading activity in question.
Several of the posts also failed to clearly identify the communications as paid advertisements.
The firm did not have a principal review and approve the posts and failed to maintain copies of these.
Finally the firm’s supervisory system was not reasonably designed to capture and maintain the retail communications posted by finfluencers.
The firm has agreed to the imposition of an undertaking requiring it to certify in writing the remediation of the issues identified.
FINRA Rule 2010
FINRA Rule 2210
FINRA Rule 3110
FINRA Reg Notice 10-06
FINRA Reg Notice 17-18
Former securities principal suspended for allegedly exercising discretion in customer accounts
The customers were aware of the trades being placed, but did not authorize the trading in writing as required.
FINRA Rule 2010
FINRA Rule 3260
Firstrade Securities censured and fined for allegedly failing to clearly disclose in its retail communications that the advertised crypto assets and services were not offered through a registered broker-dealer
The communications did not disclose that the crypto assets and services were offered by an affiliate, which was not a registered broker-dealer.
Most of the communications also failed to provide a balanced treatment of risks and potential benefits of the assets.
FINRA Rule 2010
FINRA Rule 2210
Former securities representative barred for allegedly refusing to produce information and documents
FINRA Rule 2010
FINRA Rule 8210
Former products representative barred for allegedly failing to provide documents and information
FINRA Rule 2010
FINRA Rule 8210
General Securities censured and fined for allegedly failing to disclose its own and its registered representatives’ disciplinary history in Form CRS
The firm has agreed to an undertaking requiring it to review and remediate the deficiencies identified to and to post a compliant Form CRS to its publicly available website.
FINRA Rule 2010
SEA 1934 Rule 17a-14
SEC Form CRS
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |
