Securities Lawyers Blog
A FINRA disciplinary action against a brokerage firm resolves the regulator’s case, not the customers’ losses. Investors who held accounts at Vision Brokerage Services, LLC during the periods covered by the actions below may have claims of their own. The securities arbitration attorneys at Gana Weinstein LLP represent investors in FINRA arbitration against brokerage firms and can review your accounts, free of charge, to tell you whether the conduct FINRA described affected you.
Vision Brokerage Services is an introducing broker-dealer that earns commissions on securities transactions and direct investments such as variable annuities, non-traded REITs, and mutual funds, with customer accounts carried and cleared by its affiliate Vision Financial Markets. Organized in New York in 1999, the firm is based in Stamford, Connecticut, and is licensed to conduct securities business in all fifty states and Puerto Rico.
Vision Brokerage Services, LLC – By the Numbers:
- CRD #: 47927
- Regulatory Events: 4
- Broker Employees: 7
Vision Brokerage Services, LLC – In the News:
FINRA v. Vision Brokerage Services, LLC (Case #2019061702701) – From September 2016 through December 2020, Vision Financial and Vision Brokerage failed to develop and implement an anti-money laundering (AML) program reasonably designed to achieve and monitor the firm’s compliance with the Bank Secrecy Act and the implementing regulations thereunder. In particular, the firms did not establish and implement policies and procedures tailored to the firms’ business, which could be reasonably expected to detect and cause the reporting of suspicious activity arising from transactions and money movements in domestic and foreign-based retail accounts. In addition, during that period, Vision Financial also accepted direct and omnibus accounts domiciled outside of the United States that had traders located primarily in China, Russia, Eastern Europe and other jurisdictions outside of the United States. Vision Brokerage similarly accepted direct accounts with foreign traders in these locations. Certain of these accounts had hundreds of traders who engaged in active trading strategies. Despite the heightened risks presented by these accounts, Vision Financial and Vision Brokerage failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to monitor for potentially manipulative trading on its platform, such as layering, spoofing, and wash trades. Also, from August 2018 through December 2020, Vision Financial provided its customers with direct market access to an alternative trading system (ATS) and multiple exchanges but failed to establish, document, and maintain financial risk management controls and procedures reasonably designed to limit the financial and regulatory risks associated with this activity. Vision Financial’s failures resulted in potentially manipulative trading occurring and orders entering the markets without being subjected to reasonably designed risk management controls. Based on this conduct, Vision Financial and Vision Brokerage violated FINRA Rules 3310(a), 3110, and 2010, and Vision Financial violated Section 15(c)(3) of the Securities Exchange Act of 1934, and Exchange Act Rule 15c3-5.
FINRA v. Vision Brokerage Services, LLC (Case #2012034343101) – During the review period, in 26 transactions, the firm sold corporate bonds to customers and failed to sell such bonds at a price that was fair, taking into consideration all relevant circumstances, including market conditions with respect to each bond at the time of the transaction, the expense involved and that the firm was entitled to a profit. In each transaction, the firm’s affiliated clearing firm purchased the bonds from the street and sold them to the firm at a markup, and the firm then sold the bonds to its customers at its own markup. Because the same dually registered personnel at both firms were responsible for setting the markups on each leg of a transaction, the firm should have aggregated the markups charged on both legs of the transaction in determining whether the firm sold the bonds to customers at fair prices. The conduct described in this paragraph constitutes separate and distinct violations of NASD Rules 2440 and IM-2440, and FINRA Rule 2010.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms, including firms such as Vision Brokerage Services, LLC. Our consultations are free and we welcome all inquiries.