FINRA Sanctions Torch Securities for Failure to Supervise

Torch Securities LLC Censured and Fined for Supervisory Issues in Connection with Private Placement offerings 

According to a document posted this week by the Financial Industry Regulatory Authority (FINRA), the regulator has censured and fined Torch Securities LLC (CRD No. 133642) $17,500 for supervisory issues. 

According to FINRA, between January 2019 and November 2019, Torch Securities allegedly failed to establish and maintain written supervisory procedures reasonably designed to ensure that the firm complied with its due diligence obligations and failed to conduct reasonable due diligence into three private placement offerings. 

In addition to the fine and censure, the firm agreed to certification regarding implementation of reasonably designed procedures. 

Private placement investments are complex offerings that typically come with a high degree of risk. They are not suitable for all investors.  

To learn more about the risks of investing in private placements, please see: 

Regulation D Private Placement Fraud Attorneys 

 Broker dealers are required to perform adequate due diligence on all investment recommendations they make. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.   

If your brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may be liable for investment losses through FINRA arbitration. 

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The foregoing information is all publicly available and provided by the White Law Group. If you would like to speak to a securities attorney, The White Law Group may be able to help you. For a free consultation, please call (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. For more information, please visit our website, www.whitesecuritieslaw.com.