FINRA Censures and Fines Alliance Global Partners Over Regulatory Filing Failures

U.S. self-regulatory body the Financial Industry Regulatory Authority (FINRA) has censured and fined A.G.P./Alliance Global Partners $145,000 for repeated failures to comply with notification requirements tied to securities distributions, as well as for longstanding supervisory shortcomings.

According to FINRA, between April 2019 and August 2022, the Connecticut-based firm either failed to submit, or submitted late or inaccurate, Regulation M-related notices in 55 instances covering 47 securities distributions. The deficiencies included delayed restricted-period notifications—some filed more than 100 days late—as well as trading notifications that lacked required participant information. In several cases, no notification was filed at all.

FINRA said these lapses violated Rules 5190 and 2010, emphasizing that timely and accurate filings are critical for monitoring compliance with Regulation M, which is designed to prevent market manipulation during securities offerings.

The regulator also identified supervisory weaknesses spanning from 2019 through 2024. FINRA found that Alliance Global did not maintain adequate written supervisory procedures to ensure proper filings and conducted reviews that were “unreasonably narrow.” In addition, the firm failed to assess whether it had bid for or purchased covered securities during restricted periods, breaching Rules 3110(a), 3110(b), and 2010.

As part of the settlement, Alliance Global Partners is required to submit a written certification from senior management within 60 days confirming that the identified issues have been fully remediated and that appropriate supervisory systems are now in place.

The firm accepted the sanctions without admitting or denying FINRA’s findings.