American Stocks Day-Trading Firm Monex Fined $1.3 Million for Not Registering Mexican Personnel
- Unregistered employees conducted business on Monex's behalf in the US, including collecting client information needed to open accounts, making investment recommendations to clients and transmitting orders.
The American Financial Industry Regulatory Authority (FINRA) announced today that it has ordered Monex Securities Inc. to pay $1,100,000 obtained by unregistered foreign individuals who sold securities on the firm's behalf.
The financial watchdog also fined the online stocks day-trading broker Monex (no relation to the Japanese group) $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 was suspended from acting in a principal capacity for 45 days and fined $15,000.
FINRA's rules require any individual engaged in the securities business to be registered and pass a qualification examination. It found that Ramos executed an agreement on behalf of Monex, with its parent company in Mexico, that permitted numerous employees to conduct business on Monex's behalf by, among other things, collecting client information needed to open accounts, making investment recommendations to clients and transmitting orders. None of these individuals, however, were registered in any capacity.
This case is important for all Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term firms operating in the US, including Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers, as it sets very clear limits as to what non-US registered personnel might do. Collecting client information and transmitting orders are not necessarily activities all brokers might see as requiring an employee to be registered for, but the regulator now clearly does.
Brad Bennett, FINRA executive vice president and head of enforcement, said, "It is imperative that firms such as Monex are diligent in ensuring that all individuals who are acting as representatives of the firm are properly registered and supervised. When individuals are permitted by a firm to sell securities on its behalf without being registered and supervised, investors are at risk because of the lack of regulatory oversight."
Monex and Ramos neither admitted nor denied the charges but consented to the entry of FINRA's findings.
The American Financial Industry Regulatory Authority (FINRA) announced today that it has ordered Monex Securities Inc. to pay $1,100,000 obtained by unregistered foreign individuals who sold securities on the firm's behalf.
The financial watchdog also fined the online stocks day-trading broker Monex (no relation to the Japanese group) $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 was suspended from acting in a principal capacity for 45 days and fined $15,000.
FINRA's rules require any individual engaged in the securities business to be registered and pass a qualification examination. It found that Ramos executed an agreement on behalf of Monex, with its parent company in Mexico, that permitted numerous employees to conduct business on Monex's behalf by, among other things, collecting client information needed to open accounts, making investment recommendations to clients and transmitting orders. None of these individuals, however, were registered in any capacity.
This case is important for all Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term firms operating in the US, including Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers, as it sets very clear limits as to what non-US registered personnel might do. Collecting client information and transmitting orders are not necessarily activities all brokers might see as requiring an employee to be registered for, but the regulator now clearly does.
Brad Bennett, FINRA executive vice president and head of enforcement, said, "It is imperative that firms such as Monex are diligent in ensuring that all individuals who are acting as representatives of the firm are properly registered and supervised. When individuals are permitted by a firm to sell securities on its behalf without being registered and supervised, investors are at risk because of the lack of regulatory oversight."
Monex and Ramos neither admitted nor denied the charges but consented to the entry of FINRA's findings.