FINRA fines SogoTrade for lack of Securities Trader registration of two APs

The United States Financial Industry Regulatory Authority (FINRA) today accepted an offer of settlement submitted by online brokerage firm SogoTrade, Inc.

The offer was submitted on the condition that, if accepted, FINRA will not bring any future actions against Respondent alleging violations based on the same factual findings described in this AWC.

From October 1, 2018 through the present, SogoTrade failed to qualify and register with FINRA in the appropriate categories of registration two associated persons who supervised securities trading activity. As a result, SogoTrade violated FINRA Rules 1220(b)(4) and 2010.

This matter originated from FINRA’s 2019 Trading & Execution examination of SogoTrade.

FINRA Rule 2010 requires that a member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade. A violation of another FINRA rule constitutes a violation FINRA Rule 2010.

From October 2018 through the present, and August 2020 through the present, respectively, two of SogoTrade’s associated persons (APs) supervised customer trading activity, including by reviewing surveillance exceptions related to SEC Regulations NMS and SHO and potentially manipulative trading activity.

Despite their direct supervision of customer trading activity, neither individual was qualified and registered with FINRA as a Securities Trader.

Therefore, SogoTrade violated FINRA Rules 1220(b)(4) and 2010. The brokerage consented to the imposition of a censure and a $10,000 fine.

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