Broker-Dealer Settles FINRA Charges for Public Offering Violations

A broker-dealer settled FINRA charges for violating reporting, disclosure, distribution and supervisory requirements in connection with various public offerings.

According to FINRA, Aegis Capital Corp. ("Aegis"):

  • failed to file or filed late with FINRA required documentation during public offerings;
  • neglected to disclose underwriting discount and underwriters' counsel's fees, and compensation in two prospectuses;
  • unlawfully acted as a distribution participant for offerings during the restricted period, in violation of Regulation M;
  • misfiled Restricted Period Notifications, which were either late or did not identify all distribution participants, and failed to timely file a Trading Notification when performing as a manager of security distributions restricted under FINRA Rule 5190; and
  • "failed to establish and maintain a reasonable supervisory system."

Aegis agreed to a censure and a $93,125 fine.

Tags