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

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We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele


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