False Advertising under FINRA

The Financial Industry Regulatory Authority (FINRA) reached a settlement with a registered broker-dealer for having “…overstated its trading volume in numerous securities it had advertised through Bloomberg, L.P…..”  According to the settlement agreement, “[o]verstatements of a broker-dealer’s advertised trading volume can therefore mislead market participants with respect to which broker-dealers are most active or possess the most liquidity.”  The firm is being fined $150,000.00 and being censured.

Would you do business with a company knowing it violated the law?  Leave your comments below.

Best business practice is to have all marketing be legally compliant with all applicable agencies depending the product or service being advertised.  The FTC is not the only federal agency with advertising rules.

Friendly reminder: Substantiation + transparency = TRUST!  Having legally compliant marketing campaigns builds trust.  Any question? Feel free to contact me.  https://calendly.com/audrey-advertisinglaw/30min

#substantiationequalstrust #transparencyformstrust #advertisingandmarketinglawyer

For more information:

https://www.finra.org/sites/default/files/fda_documents/2016051884601%20Mizuho%20Securities%20USA%20Inc.%2C%20CRD%2019647%20%20AWC%20va.pdf