Austin Brokerage Firm Microventure Marketplace, Inc. Consents to FINRA Sanctions for Failing to File Private Placement MemorandumsTuesday, January 21, 2020
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by Microventure Marketplace, Inc. (Microventure), a brokerage firm in Austin, Texas whose primary business involves the sale of Reg D private placement offerings.
According to the AWC, Microventure failed to file private placement memorandums pursuant to FINRA Rule 5123 in connection with 20 out of 34 total private placement offerings made from March 2017 to August 2017. This rule requires member firms to provide a copy of private placement memorandums, term sheets or other offering documents used in connection with these sales within 15 calendar days of the date of the first sale. Although Microventure used an automated alert system to notify a compliance principal about required filings, this principal failed to make the filings, which eventually led to his termination with the firm.
For failing to provide 20 filings concerning private placement offerings and filing one private placement memorandum with FINRA 44 days late, Microventure violated FINRA Rules 5123 and 2010. To resolve these violations, Microventure consented to the imposition of a censure and $40,000 fine.
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