The Financial Industry Regulatory Authority (FINRA) recently announced that it has fined Rodman & Renshaw LLC $315,000 for supervisory and other violations related to the interaction between the firm’s research and investment banking functions.
Rodman & Renshaw, LLC is a New York-based broker-dealer subsidiary of Direct Markets Holdings Corp., which provides investment banking services, including Private Investments in Public Entities (PIPEs) and registered direct offerings, to public and private companies. It also provides research, sales and trading services to institutional investors.
FINRA found that from January 2008 to March 2012, Rodman & Renshaw failed to have an adequate supervisory system to monitor interactions between its investment banking and research functions. As a result, Rodman & Renshaw failed to prevent research analysts from soliciting investment banking business. In addition, the firm compensated a research analyst for his contribution to the firm’s investment banking business and failed to prevent Rodman & Renshaw’s CEO, a member of the firm’s Research Analyst Compensation Committee while simultaneously engaged in investment banking activities, from having influence or control over research analysts’ evaluations or compensation.
In concluding this settlement, Rodman & Renshaw neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.
The foregoing information, which is publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm dedicated to assisting clients in claims against their financial professional and/or brokerage firm. The firm has offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.
For more information on FINRA’s fine of Rodman & Renshaw, visit http://www.finra.org/Newsroom/NewsReleases/2012/P154856