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:
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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Tags: private placement investments, securities fraud attorneys, Torch Securities complaints, Torch Securities LLC Investigation, Torch Securities LLC options, Torch Securities LLC sanctions Last modified: April 14, 2023