According to FINRA, Bingshan Song was fined $25,000, suspended from association with any FINRA member in all capacities for one month, suspended in any principal capacity for an additional four months, and required to complete 10 hours of continuing education concerning supervisory and recordkeeping responsibilities.

The findings revealed that Song failed to reasonably supervise his member firm's business-related electronic communications on a non-firm communications platform used by firm associated persons. Song used, and knew other firm personnel used, an unapproved social media platform for business-related communications, including pre-trade risk controls and personnel issues.

Song was also a member of group chats between the firm's associated persons and firm customers in which the customers' trading at the firm was discussed. Despite knowing about these messages, Song failed to stop the communications or ensure the firm captured, retained, and reviewed them.

When firm compliance personnel communicated concerns about the platform being used, Song still failed to take any reasonable supervisory steps to address the issue.

Additionally, Song caused the firm to maintain incomplete books and records by sending and receiving thousands of business communications that the firm failed to capture and review. The dual sanctions reflect both Song's individual conduct in using unapproved channels and his supervisory failures in not addressing the firm-wide problem.

The suspension in all capacities is in effect from July 21, 2025, through August 20, 2025. The suspension in any principal capacity will be in effect from August 21, 2025, through December 20, 2025.

This case illustrates that supervisors have a heightened responsibility not only to follow rules themselves but to ensure those they supervise do as well. Knowing about violations and failing to act can result in significant sanctions.