NTB Financial Corporation of Centennial Colorado has been censured and fined $45,000.00 by Financial Industry Regulatory Authority (FINRA) supported by allegations that the firm overcharged customers on corporate bond transactions. Letter of Acceptance Waiver and Consent No. 2015047738901 (Dec. 10, 2018). Letter of Acceptance Waiver and Consent No. 2015047738901 (Dec. 10, 2018).
According to the AWC, between July 1, 2015 and September 30, 2015, seventy-one principal transactions pertaining to a corporate bond had been effected by NTB Financial Corporation where the firm charged customers unfair prices.
The AWC stated that it was incumbent on the firm to refrain from charging customers prices that are not adequately connected to the prevailing market rates for the security or from charging unreasonable commissions. FINRA stated that the mark-ups charged by NTB Financial Corporation were reviewed against seven factors: 1) nature of the business that the broker is engaged in; (2) mark-up patterns; (3) disclosures made to the customer concerning transaction costs; (4) the total amount of funds used in the transaction; (5) the security price; (6) availability in the marketplace; and (7) the composition of the security. Evidently, mark-ups charged by NTB were unfair based on those factors.
The AWC stated that customers were assessed $43,142.06 in unreasonable mark-ups. FINRA found that the firm’s conduct was violative of FINRA Rules 2010 and 2121.
