Sep 14, 2016

Boca Raton Firm Newbridge Securities Fined for UIT Management Violations

Newbridge Securities Corporation (Newbridge) of Boca Raton, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (UITs) in violation of FINRA Rule 2010. A UIT is a type of Investment Company that issues securities and holds a fixed portfolio. UITS typically offer “break points” which reduce client fees based on the amount invested. FINRA requires that all UIT transactions take place “on the most advantageous terms available to the customer.” FINRA investigators found that Newbridge failed to apply sales discounts to customers resulting in clients paying excessive charges.

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Feb 25, 2015

Newbridge Securities Fined By FINRA for Failing to Supervise Corporate Bond Sales

Newbridge Securities Corporation (Newbridge) of Fort Lauderdale, Florida was fined $138,000 by the Financial Industry Regulatory Authority (FINRA) for failing to supervise corporate bond transactions. Without admitting or denying the findings, Newbridge consented to FINRA’s sanctions and to the entry of findings that it sold corporate bonds to investors and failed to sell the bonds at a fair price, considering the relevant circumstances, like market conditions. FINRA found that Newbridge failed to conduct proper due diligence with respect to the best inter-dealer market and thereby failed to buy or sell the corporate bonds in a market which would result in a price to its investors which was as favorable as possible.

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