FINRA Sanctions Newbridge Securities, Boca Raton, FL
According to a Letter of Acceptance, Waiver and Consent, on September 26, 2019, the Financial Industry Regulatory Authority (FINRA) reportedly sanctioned Newbridge Securities (CRD #104065, Boca Raton, FL) with a censure and a $225,000 fine.
According to FINRA’s findings, between July 2013 and July 2016, Newbridge allegedly failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (WSPs), concerning the sale of complex securities such as structured notes and leveraged, inverse and inverse-leveraged exchange-traded funds that were reasonably designed to achieve compliance with FINRA’s suitability rule.
Further, from November 2015 through March 2016, Newbridge purportedly failed to have a reasonable basis to recommend the sale of a private placement offering, CJS Technology Select Fund, because it allegedly failed to conduct reasonable due diligence on the offering. FINRA also found that Newbridge’s Director of Investment Banking allegedly failed to reasonably supervise the offering because they reportedly allowed the firm to rely primarily on due diligence conducted by the issuer of the offering.
Also, Newbridge allegedly deposited investor funds into a law firm trust account for a private offering instead of requiring that an independent bank be established as the escrow agent, as required by SEC regulations.
For FINRA’s full findings see FINRA Case # 2016047569601.
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