Broker-Tech Firm Fined $25,000 for Unregistered Activity

Nov 5

Texas Securities Commissioner Travis J. Iles entered a Disciplinary Order on Nov. 5 that levied a $25,000 fine on Trade-PMR Inc., a provider of brokerage and technology services, for failing to know that two investment advisers using its services were not registered to render investment advice in Texas.

The fine will be deposited into the General Revenue Fund of the State of Texas.

Trade-PMR, based in Gainesville, Fl., provides trading platforms and other technology services to persons and firms acting as independent investment advisers. It has been a registered dealer in Texas since 1999.

The firm’s supervisory procedures include confirming that the investment advisers using its services are registered. In the period of July 2014 to January 2017, however, two of its investment advisers in Texas did not pay their registration renewal fees.

Despite becoming unregistered, the advisers continued to place trades through Trade-PMR.

The order sanctions Trade-PMR for failing to enforce its written supervisory procedures.

In addition to the fine paid to State of Texas, Trade-PMR will also contribute $5,000 to the Investor Protection Trust, a nonprofit organization that supports investor education efforts in Texas and other states.