FINRA Fines Ceros Financial Services for Rules Violations
The Financial Industry Regulatory Authority reportedly sanctioned Ceros Financial Services this week for supervisory issues. The firm was censured and fined $90,000.
According to FINRA, Ceros Financial Services conducts a general securities business, which includes offering private placement investment opportunities. During 2022 and 2023, private placements were reportedly a majority of the firm’s revenue.
FINRA found that between May 2022 and August 2023, Ceros reportedly served as placement agent in three contingency offerings. Ceros allegedly failed to terminate the offerings and promptly return investor funds when there were material changes to the terms of the offerings. Thus, Ceros willfully violated Exchange Act Rule 1 0b-9 and violated FINRA Rule 2010.
From at least May 2022 to at least August 2023, Ceros purportedly failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs ), reasonably designed to achieve compliance with Exchange Act Rule I 0b-9. Therefore, Ceros reportedly violated FINRA Rules 3110 and 2010.
FINRA Rule 3110
Failure to Supervise, as outlined in FINRA Rule 3110, is a regulatory violation concerning the inadequate supervision of registered representatives (brokers) and their activities within member firms (broker-dealers).
This rule is enforced by FINRA to ensure that brokerage firms maintain sufficient oversight over their brokers. It’s aimed at safeguarding investors by detecting and preventing potential misconduct, fraud, or unethical behavior that could harm investors’ interests.
Firms that fail to supervise their advisors, can be held responsible for investment losses in a Financial Industry Regulatory Authority (FINRA) arbitration claim.
Free Consultation with Securities Fraud Attorneys
If you have suffered losses investing with Ceros Financial Services, we may be able to help you. Please contact the securities attorneys at The White Law Group. For a free consultation, please call the offices at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
We represent investors in FINRA arbitration claims in all 50 states. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
Last modified: January 24, 2025
