FINRA Fines Andes Capital Group for Alleged Reg BI Violations

Andes Capital Group, LLC has agreed to a $25,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA). The regulator found that from June 30, 2020, to the present, the firm failed to establish and enforce written policies reasonably designed to ensure compliance with Regulation Best Interest (Reg BI), violating Reg BI and FINRA Rules 3110 and 2010.

Additionally, in connection with six private placement offerings between December 2021 and August 2023, the firm did not timely file required documents with FINRA, breaching Rules 5123 and 2010. As part of the settlement, Andes Capital agreed to a censure, the financial penalty, and an undertaking.

The firm, a FINRA member since 2006, is headquartered in Chicago, Illinois, and operates with 36 registered representatives across two branch offices. Its business primarily involves selling private placement offerings.