According to FINRA, A.G.P. / Alliance Global Partners, LLC was censured, fined $145,000 (of which $88,079 is payable to FINRA), and required to comply with undertakings for failing to file timely and accurate notifications required under Regulation M and for inadequate supervision of these obligations.

Regulation M under the Securities Exchange Act of 1934 is designed to prevent manipulative practices in connection with securities distributions. When a broker-dealer participates in a distribution of securities, it must notify FINRA of certain activities, including restricted period notifications and trading notifications. These notifications help FINRA surveil for potential market manipulation during securities offerings.

A.G.P. submitted 21 untimely restricted period notifications, with delays ranging from one to 100 days late. The firm also submitted notifications that were inaccurate because they failed to identify all participants in distributions. This occurred when distribution participants joined after the initial notification was filed, and the firm did not amend its notifications to reflect the additional participants. Additionally, the firm completely failed to submit two restricted period notifications because it mistakenly believed one distribution qualified for an exception to Rule 101 and that its role in another distribution did not require a notification.

The firm's trading notification failures were similar in nature. A.G.P. submitted 23 untimely trading notifications, three inaccurate notifications that failed to identify all participants, and completely failed to submit three trading notifications due to mistaken beliefs about regulatory requirements.

The firm failed to reasonably supervise its Regulation M compliance. The firm's written supervisory procedures did not provide for any reviews to ensure notifications were filed timely, and the firm conducted no reviews of timeliness. The firm later implemented a supervisory system and procedures to identify and discipline persons responsible for untimely filings, but conducted unreasonably narrow reviews of notification accuracy.

Additionally, the firm's procedures did not provide for supervisory reviews to monitor whether it purchased or bid for covered securities during applicable restricted periods. As a result, when the firm bid for and purchased certain covered securities as principal to cover errors, it failed to review these activities for Rule 101 compliance. The firm implemented supervisory reviews of bids and purchases in its trading and error accounts in October 2022, but has not yet established written procedures for these reviews.