On November 26, FINRA accepted a Letter of Acceptance, Waiver, and Consent (AWC) from a member firm (the respondent) based in New Jersey. According to the AWC, from January 2020 through November 2024, the respondent engaged in various actions that allegedly violated sections of the FINRA Rules, Exchange Act Section 17(a), Exchange Act Rule 17a-4, and Rules 4 and 5 of Regulation S-P by (i) making, through paid social media influencers, misleading and promissory communications that were not fair and balanced, (ii) failing to have a registered principal review, (iii) failing to maintain a proper supervisory and record keeping system, including failure to file required options communications with FINRA, and (iv) failing to provide initial and annual privacy notices to about 450,000 customers. Without admitting or denying FINRA’s allegations, the respondent consented to a censure, a $750,000 fine, and an undertaking to remediate the identified issues and implement a compliant supervisory system.
