FINRA Sanctions MD Global Partners for Reg BI Violations
According to a letter of acceptance on April 11th, 2025, FINRA, the securities regulator, has censured and fined MD Global Partners $40,000. MD Global Partners, a FINRA-registered firm is located in New York City, NY.
According to FINRA’s findings, first, from June 30, 2020, to December 2022, MD Global Partners reportedly failed to fully establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Securities Exchange Act Rule 15l-1 (Regulation Best Interest or Reg BI).
Second, between January 2019 and March 2024, the firm allegedly failed to timely file required documents with FINRA for 16 private placement offerings. As a result, the firm violated FINRA Rules 5123 and 2010.
Third, for the years 2019, 2020, 2021, 2022, and 2023, the firm allegedly did not complete its annual certification of compliance and supervisory processes. As a result, the firm purportedly violated FINRA Rules 3130 and 2010.
Risks of Investing in Private Placements
Private placement investments carry significant risks, including:
- Illiquidity: These investments are long-term and difficult to sell.
- High Fees & Commissions: Brokers and advisors may earn more than 9% in commissions and fees, which can impact investor returns.
- Potential for Loss of Principal: Market volatility or poor performance can lead to substantial losses.
- Limited Investor Control: Management decisions are made by a trustee, restricting investor influence.
- Tax Implications: If regulatory requirements are not met, potential tax benefits could be at risk.
Broker Due Diligence
Under the SEC’s “Regulation Best Interest” standard, brokerage firms must conduct due diligence before recommending investments. If a financial advisor fails to assess risk suitability and investors suffer losses, they may have grounds for a complaint or lawsuit.
Lawsuit Options: Individual FINRA Arbitration vs. Class Action
If you suffered losses with your financial advisor you may have two main legal paths:
- FINRA Arbitration: Best suited for investors with significant losses, typically over $100,000.
- Class Action Lawsuit: More appropriate for multiple investors with smaller claims that may not justify individual litigation.
How to File a Complaint for Investment Losses
If you experienced investment losses with MD Global Partners you may be able to recover compensation through FINRA arbitration.
For a free consultation with a securities attorney, contact The White Law Group at 888-637-5510 today.
About The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. The firm represents investors nationwide in claims against brokerage firms through FINRA arbitration. Visit our homepage for more information on investor recovery options.
Last modified: April 29, 2025
