Monex Fined Over Securities Sales
Regulator Says Firm Allowed Unregistered Employees to Sell Securities
Monex Securities Inc. must give up the $1.1 million it made by allowing unregistered foreign employees to sell securities on the firm’s behalf, the Financial Industry Regulatory Authority said.
In addition, the company must pay a $175,000 fine and President and Chief Compliance Officer Jorge Martin Ramos Landero will be suspended for 45 days and personally fined $15,000, Finra said.
Finra requires anyone associated with banking to be registered after passing a qualification exam. Its investigation found that Mr. Ramos allowed unregistered employees in Mexico to conduct business on Monex’s behalf. They collected client information and made investment recommendations, among other duties, over a period of 2½ years.
“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,” said Brad Bennett, Finra executive vice president.
Monex neither admitted nor denied the charges, but consented to Finra’s findings. A representative wasn’t immediately available for comment.