Webull Financial LLC has agreed to pay a fine of $1.6 million as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From January 2019 to December 2022, Webull Financial failed to reasonably supervise and retain social media communications that promoted the firm posted by individuals with followings on social media (commonly know as “influencers”). Some of those communications included statements that were not fair and balanced or were promissory or exaggerated.

Therefore, the firm violated FINRA Rules 2210, 2220, 3110, 4511, and 2010, Exchange Act § 17(a), and Exchange Act Rule 17a-4.

From June 2020 to December 2022, Webull Financial failed to timely deliver Form CRS to certain customers, make and preserve related records, and establish, maintain, and enforce a supervisory system reasonably designed to achieve compliance with its Form CRS obligations. Therefore, the firm violated Exchange Act § l 7(a), Exchange Act Rules l7a-3, 17a-4, and 17a-14, and FINRA Rules 3110, 4511, and 2010.

For these and other violations, Webull Financial is censured and fined $1.6 million.

Webull Financial LLC became a FINRA member in January 2018 and began offering trading to customers in May 2018. The firm offers self-directed trading to retail investors through its mobile application and website. Headquartered in New York, New York, the firm has three branch offices and approximately 100 registered representatives.