What You Have to Know
- CEO Yong Soo Kim, who can also be the agency’s chief compliance officer, was suspended for 2 months.
The Monetary Trade Regulatory Authority has fined Kayan Securities and its CEO and chief compliance officer, Yong Soo Kim, for violating two prongs of Regulation Finest Curiosity.
Kim was additionally suspended for 2 months for the Reg BI violations and Kayan ordered to pay $50,000 in partial restitution for failing to oversee a rep’s unauthorized and extreme buying and selling.
In accordance with FINRA’s order, from January 2018 by at the least April 2021, Kayan and Kim failed to ascertain, keep and implement a supervisory system, together with written supervisory procedures, fairly designed to realize compliance with the suitability necessities of FINRA Rule 2111 and the care obligation of Reg BI as they pertain to extreme buying and selling, violating FINRA Guidelines 3110 and 2010.
As of June 30, 2020, Kayan additionally violated Reg BI’s compliance obligation by not establishing, sustaining, and imposing WSPs fairly designed to realize compliance with Reg BI, in accordance with the order.
In January 2020, a buyer gained a FINRA arbitration award in opposition to Kim, “who was discovered collectively and severally accountable for the shopper’s losses, and ordered to pay $12,757 after the shopper made allegations of breach of contract, errors/costs, negligence, breach of fiduciary responsibility, churning, lack of suitability, unauthorized buying and selling, and indemnification,” the order states.