Financial Industry Regulatory Authority (FINRA) recently announced that it has ordered Monex Securities Inc. to pay $1,100,000 in disgorgement of commissions, plus interest, obtained by unregistered foreign individuals who sold securities on the firm’s behalf. According to the announcement, FINRA also fined Monex $175,000 for failing to register the foreign representatives and for related supervisory deficiencies over a period of two and a half years. Additionally, Monex’s President and Chief Compliance Officer, Jorge Martin Ramos Landero (Ramos), was reportedly suspended from acting in a principal capacity for 45 days and fined $15,000.
FINRA’s rules require any associated individual engaged in the investment banking or securities business to be registered under the appropriate category of registration and the individual must pass the appropriate qualification examination.
According to its notice, FINRA allegedly found that Ramos executed an agreement on behalf of Monex with its parent company in Mexico that permitted numerous employees to conduct securities business on Monex’s behalf by, among other things, collecting client information needed to open accounts, making investment recommendations to clients and transmitting orders. Monex purportedly paid these individuals transaction-related compensation for these efforts. None of these individuals, however, was apparently registered in any capacity with FINRA. Ramos and Monex also allegedly failed to establish, maintain and enforce supervisory systems and written procedures to ensure compliance with applicable securities laws and regulations.
The notice does point out that in concluding this settlement, Monex and Ramos 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, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in claims against brokerage firms throughout the country.
For a free consultation with a securities attorney, please call the firm’s Chicago office at 312/238-9650. For more information on the firm and its securities arbitration practice, visit https://www.whitesecuritieslaw.com.