United Capital Markets, Inc has agreed to pay a fine of $25,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

Between January 2018 and December 2019, the company failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to comply with Rules 3110(a) and (b) with respect to its supervision of trading in equities and options by a senior executive.

During that time period, the firm’s WSPs did not expressly designate the senior executive as responsible for supervising his own trading, nor did the WSPs document how that self-supervision complied with FINRA Rule 3110(a).

Additionally, the firm did not have procedures or guidance for the supervision of trading in equities and options, which the senior executive traded on behalf of the firm. The firm’s WSPs did not contain any procedures on supervising equities and options trading, resulting in the senior executive, in supervising his own activities, having no procedures to rely on for such trading.

This conduct was in violation of FINRA Rules 3110 and 2010.

In addition, between January 2018 and February 2019, UCM distributed eight retail communications to investors or potential investors that had not been subject to prior review and approval by an appropriately qualified principal. Moreover, these communications contained language that was exaggerated and which was not fair and balanced.

For example, one communication to retail investors described one company as one of the firm’s “TRADE OF THE CENTURY ideas.” A separate communication noted that the same company was “the best in the world” at its particular business.

As a result, the firm violated FINRA Rules 2210 and 2010.

In addition to the $25,0000 fine, UCM has agreed to a censure.

United Capital Markets, Inc. (UCM) has been a FINRA member since June 1996. The firm has 10 registered representatives located at its Miami, Florida headquarters. UCM’s business model focuses on debt securities.