FINRA Suspends Ultralat Capital Markets Broker for Unsuitable and Overconcentrated Bond Recommendations
Mauricio Jaramillo, a stockbroker formerly registered with Ultralat Capital Markets, Inc., submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $7,500 and suspended for four months. Without admitting or denying FINRA’s findings, Mauricio Jaramillo, of Bogota, Colombia, consented to the entry of findings that he recommended unsuitable and overconcentrated short-term trading in bonds in the accounts of three customers. Ultralat Capital Markets (Ultralat) provides retail brokerage services for customers based in Latin America referred by Ultrabursatiles S.A. Comisionista de Bolsa. While registered with Ultralat as a foreign associate, Mr. Jaramillo allegedly engaged in short-term bond trading which included bond swap transactions. According to FINRA, due to Mr. Jaramillo’s recommendations, the customers’ accounts were almost totally (98%) concentrated in bonds denominated in Brazilian Reais. Further, FINRA alleged the customers had significant margin balances in their accounts as well. Mr. Jaramillo allegedly had no basis for such short-term, unsuitable, and overconcentrated bond recommendations, especially in light of the fact that two of the three customers involved had conservative investment objectives. Consequently, Mr. Jaramillo was assessed a deferred fine of $7,500 and suspended for four months. The suspension is in effect from January 17, 2017 through May 16, 2017.
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