Open to the investment public, Inc has agreed to pay a fine of $ 350,000 as part of a settlement with the Financial Industry Regulatory Authority (Finra).
From January 2020 until at least September 2022, public investments paid by people with sequences on social media sites (commonly known as “influencers”) to promote business in social media communications.
Some of these communications included statements that were not fair and balanced or made claims that were misleading or unjustified.
Public investment influences published communications, arguing that the company offered “free transactions to the Commission”, but did not reveal that other fees may apply or provide a link to the timetable of business fees.
In addition, some influences promoted the ability to buy fractional shares through public investment, but did not disclose some limitations related to investing in fractional shares, including, for example, that fractional shares may not be transferred to another broker.
In addition, several positions have also failed to clearly identify communications as filled ads.
As a result, the business violated the rules of Finra 2210 (d) and 2010.
From January 2020 to March 2023, the public investment also did not review and maintain the records of all retail communications spreading on behalf of the business by its influences and failed to establish, maintain and impose a logically designed system.
As a result, the Company violated the 1934 § 17 (a) law of the exchange of mobile values of 1934 § 17 (a) of the law on the exchange of Article 17-4 and the Rules 2210 (b), 4511, 3110 and 2010.
For these violations, public investments were charged, imposed a fine of $ 350,000 and required to comply with a business.
Open to Public Investing, Inc. (Public Investments), which became a member of Finra in 2004, provides self-directed transactions to retail investors through its application and website. Based in New York, New York, the company has an office and 31 registered representatives.