G.research, LLC has agreed to pay a fine of $30,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From June 30, 2020, to May 1, 2023, G.research failed to disclose its own and its control affiliates’ disciplinary history in the firm’s customer relationship summary (Form CRS). By filing and delivering to customers a Form CRS that omitted required information, G.research willfully violated Section 17(a)(1) of the Securities Exchange Act of 1934 and Exchange Act Rule 17a-14, and violated FINRA Rule 2010.
From June 30, 2020, to the present, G.research has failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with Exchange Act§ 17(a)(1) and Exchange Act Rule 17a-14, in violation ofFINRA Rules 3110 and 2010.
On top of the fine, the firm has agreed to a censure and an undertaking that a member of the firm’s senior management who is a registered principal of the firm will certify in writing that the firm has implemented reasonably designed written supervisory procedures regarding its compliance with Form CRS requirements.
G.research has been a FINRA member since February 1977. The firm, which is located in Rye, New York, has 19 registered representatives. Although G.research’s primary business is acting as an agent in transactions of managed accounts directed by an affiliated investment advisory business, it also offers self-directed brokerage accounts to customers of its affiliated investment advisory business.
