Folio Investments, Inc: Information for Investors

Folio-Investments,-Inc--Information-for-Investors
Folio Investments, Inc (CRD#: 48015), a registered securities broker-dealer with a main office in McLean, Virginia is currently licensed to operate in 53 states and territories. As of January 15th, 2018, this brokerage firm 6 total disclosures, 4 regulatory events and 2 FINRA arbitration cases listed on this official report.

In this article, our investment fraud lawyers seek to inform investors by providing details regarding those regulatory disclosures. The information provided below discusses the 4 regulatory events related to Folio Investments, Inc. All details come directly from this company’s official BrokerCheck Report. For full information about this firm, please refer to this report.

 

Folio Investments, Inc: FINRA Disclosures

 

Disclosure # 1

Date: 06/04/2014

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it submitted inaccurate blue sheets to the SEC and FINRA. The findings stated that the firm recoded its internal blue sheet program. After this recoding, the firm began erroneously reporting the trade quantity and transaction amount for certain transactions. Additionally, certain blue sheets were submitted with either an inaccurate opposing broker number or contra party identifier. The findings also stated that the firm did not have in place an adequate audit system providing for accountability regarding the inputting of records required to be maintained and preserved.”

Sanction Details: “Monetary/fine $50,000. The firm further agrees to conduct a review of its policies, systems, and procedures (written or otherwise) relating to its compilation and submission of blue sheet data and the audit deficiencies addressed herein.”

 

Disclosure # 2

Date: 05/05/2014

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that issuers operate websites that offer marketplaces for the notes and the firm provides the exclusive secondary markets for the registered notes offered by the issuers through trading platforms. The findings stated that the trading platforms are accessible exclusively from hyperlinks located on the issuers’ websites, and only to members of the issuers who also become the firm customers. During the relevant period, the firm reviewed and approved the communications. However, there were several risks associated with trading the issuers’ notes on the trading platforms. The firm omitted and, in some instances, failed to prominently disclose in the communications, particularly on the trading platforms risks associated with the notes that rendered the content unfair and unbalanced and/or without a sound basis for evaluating the facts in regard to the securities, industry, and/or services provided. The firm failed to ensure that the communications adequately and prominently disclosed how estimated returns were calculated. In addition, in several instances on one issuer’s website, the notes were described as quality notes, therefore the firm allowed the notes to be described as quality notes without information sufficient to form a sound basis for evaluating the facts in regard to the notes. The findings also stated that the communications on issuers’ website contained false, exaggerated, unwarranted, and/or misleading statements.”

Sanction Details: “Monetary/fine $35,000. Undertaking to render language, associated with the financial product that are fair and balance and provide a sound basis for evaluating facts in the communications currently on one issuer’s website more prominent not later than 15 business days after acceptance of this AWC.”

 

Disclosure # 3

Date: 01/25/2008

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Folio Investments, Inc. failed to report the time of execution to the automated confirmation transaction service (ACT) in last sale reports of transactions in NASDAQ national market and NASDAQ smallcap securities. The firm failed to include the bunched order modifier (“.b”) for aggregated trade reports submitted to act.”

Sanction Details: “Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings; therefore, the firm is censured and fined $13,000.”

 

Disclosure # 4

Date: 01/09/2007

Reporting Source: Regulator

Initiated By: NASD

Allegations: “Submitted reports to OATS with respect to equity securities traded on the NASDAQ stock market that were not in the electronic form prescribed by NASD and were repairable. The reports were rejected by the OATS system and notice of such rejection was made available to the firm on the OATS website but the firm did not successfully correct or replace the reports.”

Sanction Details: “Without admitting or denying the findings, the firm consented to the described sanction and to the entry of findings; therefore, the firm is fined $5,000.”

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