FINRA Fines United Capital Markets $25,000

FINRA has censured and fined United Capital Markets $25,000 after finding the firm failed to maintain a reasonable supervisory system over a senior executives equities and options trading and circulated unapproved retail communications with exaggerated claims between 2018 and 2019, in violation of FINRA Rules 3110, 2210, and 2010.

Findings Overview

FINRA determined that from January 2018 to December 2019, the firm lacked written supervisory procedures that designated who oversaw a senior executive‘s trading in equities and options, leaving the executive effectively supervising personal activity without documented controls required under Rule 3110(a)–(b). The WSPs also omitted any guidance for supervising equities and options activity, meaning there were no procedures for monitoring the executive’s trades in those product areas, a failure cited as contrary to Rules 3110 and 2010.

Communications Violations

Between January 2018 and February 2019, UCM distributed eight retail communications that were not pre‑reviewed and approved by a qualified principal as required by Rule 2210, and the materials included language deemed exaggerated and not fair and balanced. Examples included characterizations such as “TRADE OF THE CENTURY” and claims that a company was “best in the world,” which FINRA found violated the content standards of Rule 2210(d) and the high‑level conduct rule, 2010.

Sanctions And Firm Context

Under the settlement, United Capital Markets accepted a censure and a $25,000 fine tied to the supervisory and communications violations identified by FINRA. UCM has been a FINRA member since June 1996, employs 10 registered representatives at its Miami, Florida headquarters, and focuses primarily on debt securities, despite the cited gaps relating to equities and options oversight.

Why It Matters For Compliance

The case underscores that Rule 3110 requires explicit responsibility mapping and product‑specific procedures, especially where senior personnel might otherwise oversee their own activity. It also reinforces that retail communications must be approved by a qualified principal before use and must present balanced, accurate claims under Rule 2210s content standards.