Incorporated in the United States in 1992, Monex Securities, Inc. is an institutional broker-dealer that provides brokerage services, investment advice, and financial products. The firm is headquartered in Houston, Texas.
Monex Securities, Inc. operates as a separate entity. It is also a wholly-owned subsidiary of the parent company, Monex Casa de Bolsa, S.A. de C.V., controlled by leading Mexican financial conglomerate Monex Grupo Financiero.
Our institutional investor lawyers represent those who have suffered losses because of broker misconduct or negligence involving a Monex Securities financial advisor. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today so that we can help you explore your legal options.Regulatory Cases Involving Monex Securities, Inc
According to BrokerCheck, Monex Securities, Inc. has been named in several regulatory cases, such as:October 2015: Unfair Pricing
In a case brought by the Financial Industry Regulatory Authority (FINRA), Monex Securities consented to the sanctions and entry of findings that it "sold (bought) corporate bonds to (from) customers" but failed to do so at a fair price considering market conditions and other factors at the time. The firm paid a $25K fine.March 2015: Excessive Fees
Monex Securities, Inc. was fined $7,500 for allegedly overcharging customers with excessive mark-ups and mark-downs on foreign bond transactions.December 2014: Supervisory Failures and Working With Unregistered Persons
FINRA found that foreign individuals associated with Monex's parent company earned transaction-related compensation for referring non-US customers to set up accounts at the firm and transmitting orders for those accounts. These individuals were unregistered with any U.S. regulator.
The self-regulatory organization (SRO) said that in 2011 alone, Monex made more than $6.3M in revenue from the accounts involved, and employees of its parent company received $1.6M.
FINRA fined the broker-dealer $175K and ordered it to pay $1.1M in disgorgement plus interest. It is important to note that under FINRA rules, there are two forms of exemptions for foreign nationals to receive compensation.
They involve payments related to transactions the client completes in the account and payments to non-US persons for work involving referrals of non-US clientele to a FINRA-registered American broker-dealer. However, because Monex Securities, Inc.'s parent company is not under FINRA regulation, these exemptions did not apply.
Also, according to the SRO, Monex Securities, Inc. intended to delegate its supervisory duties to the parent company in Mexico. This included supervisory obligations related to actions of the foreign affiliates (specifically persons dealing with US-based clientele) and supervisory duties involving the "statutory disqualification" of these affiliates.April 2011: Monex Securities Failed to Supervise Foreign Finders
NASD (National Association of Securities Dealers) found that Monex Securities did not properly supervise and register its foreign finders and lacked the necessary written supervisory procedures. These foreign finders should have only referred new non-US customers.
Instead, they also serviced customer accounts. Some of the customers who were introduced to the brokerage firm by one rogue foreign finder were given fake statements that inflated the values of their accounts by more than $2M.
Monex Securities was fined $25K, written supervisory procedures were put in place, foreign finders were discontinued, and clients were compensated for the harm they suffered.May 2007: Monex Securities, Inc Failed to Execute a TRACE Participation Agreement
Fining Monex Securities $15K, NASD found that the brokerage firm failed to execute a TRACE participation agreement before its involvement in related transactions. Not only that, but the firm purportedly did not report TRACE transactions even though this was a requirement. Supervision related to this matter also was found to be deficient.April 2005: Failure to Apply For Change of Ownership Approval
Monex Securities was fined $18k for not applying for NASD for change of ownership approval, allowing its general securities principal and then-president and CEO Moises Tiktin to go unregistered and not completing certain continuing education requirements.Knowledgeable Institutional Investor Lawyers
Our seasoned securities law firm represents institutional investors and high-net-worth individual investors pursuing financial damages against brokerage firms and financial advisors whose wrongful actions were responsible for their losses.
With over 30 years of experience working with thousands to recover millions of dollars, SSEK Law Firm remains dedicated to fighting for our clients in FINRA arbitration, litigation, and mediation. Call our securities fraud lawyers at (800) 259-9010 today or contact us online.