FINRA Fines EDI Financial, Inc. for Private Placement Offerings

Posted on May 8th, 2015 at 2:46 PM
FINRA Fines EDI Financial, Inc. for Private Placement Offerings

FINRA alleged that EDI Financial, Inc., a registered broker-dealer in Texas, failed to adopt and implement supervisory systems for the solicitation and sale of private placements.

According to FINRA, EDI Financial lacked adequate written procedures concerning what concentration of a customer’s assets could be allocated to private placements. And the firm did not effectively monitor customers’ exposure to private placements.

In addition, FINRA alleged that the firm lacked adequate supervisory systems for conducting due diligence on private placements. For instance, the firm’s written supervisory procedures did not provide adequate guidance on how due diligence was to be documented by the firm and consequently it was found that the firm failed to sufficiently document due diligence conducted on private placements.

 Without admitting or denying the facts, EDI Financial resolved the enforcement action and consented to a public censure and $100,000 fine.

Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, FINRA, Investing, Investment Finance

Return to Archive



I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y


October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.