Miami Broker-Dealer Sanctioned By FINRA for Failure to Supervise Broker
Insigneo Securities, LLC (CRD #29249) is a brokerage firm that is licensed to operate in 52 U.S. states and American territories. It has a main headquarters in Miami, Florida. On December 18th, 2024, the Financial Industry Regulatory Authority (FINRA) announced a censure and an $85,000 fine against the firm for failure to properly supervise its registered representatives. Here, our Miami securities fraud attorney provides a more comprehensive explanation of FINRA’s enforcement action against the South Florida broker-dealer.
FINRA Sanctions: Insigneo Securities, LLC (Miami-Based Broker Dealer)
Insigneo Securities, LLC is a Miami, FL brokerage firm that operates nationwide. It is regulated by FINRA. In December of 2024, FINRA took enforcement action against the firm for violations of industry regulations. Specifically, the violations were focused on the broker-dealer’s failure to properly supervise its registered representatives.
FINRA determined that the brokerage firm allowed a specific representative to sell private placements through an unaffiliated advisor—without the proper disclosure. The representative reportedly sold $9.75 million in securities to 25 investors, including firm customers. However, there was no oversight of these private placements. The representative resigned and was later barred from the industry after customer complaints were made.
Miami Broker-Dealer Was Censured and Fined for Violating Supervisory Requirements
Without admitting or denying any of the specific allegations raised by FINRA, Insigneo Securities, LLC consented the proposed penalties. The Miami-based broker-dealer accepted a public censure and an $85,000 fine.
An Overview of FINRA’s Supervision Requirements from Brokerage Firms
Securities industry regulations are very clear: FINRA requires brokerage firms to establish and maintain effective supervisory systems in order to ensure compliance with securities laws. Along with other things, the supervision requirements are designed to protect investors and maintain market integrity by preventing misconduct. Here are some of the most notable FINRA Rules:
- FINRA Rule 3110: Under FINRA Rule 3110, firms must implement written supervisory procedures (WSPs) that outline how they monitor the activities of their registered representatives. Along with other things, they should review transactions, approve communications with clients, and ensure compliance with all industry regulations. If broker-dealers do not have proper written supervisory procedures in place, they could face sanctions from FINRA.
- FINRA Rule 3280: Under FINRA Rule 3280, firms must supervise private securities transactions conducted by their representatives. Notably, representatives must provide prior written notice of such transactions, and firms must assess whether to approve or prohibit them. If approved, firms must record these transactions and supervise them as if they were their own. If the broker-dealer does not want to provide oversight for a securities transaction by a registered representative, it must not approve it.
Call Our Florida Securities Fraud Lawyer Today
At Carlson & Associates, P.A., we are proud to be strong, experienced advocates for investors. If you have any questions or concerns about an investment fraud claim, we are here to help. Contact us today for a fully confidential case review. With a legal office in Miami, our firm handles securities fraud cases throughout South Florida.
Source:
brokercheck.finra.org/firm/summary/29249