According to FINRA, NewEdge Securities, Inc., formerly known as Mid Atlantic Capital Corporation (CRD #10674), based in Pittsburgh, Pennsylvania, was fined $90,000 and ordered to pay $44,927.83 in restitution on March 7, 2024, for charging unfair prices in bond transactions and failing to maintain an adequate supervisory system.FINRA found that the firm charged customers unfair prices in corporate and municipal bond transactions. Under FINRA Rule 2121 and MSRB Rule G-30, broker-dealers are required to buy or sell securities at prices that are fair and reasonable, taking into consideration all relevant factors including the prevailing market price of the security. These fair pricing obligations are fundamental protections for investors, ensuring that firms do not take excessive markups or markdowns that erode investment returns.The investigation revealed that the firm failed to consider appropriate pricing information when executing bond transactions for customers. This means the firm did not adequately reference prevailing market prices, recent comparable transactions, or other relevant pricing benchmarks when determining the prices it charged. As a result, customers paid more than they should have when buying bonds or received less than they should have when selling them.Compounding the pricing violations, FINRA found that NewEdge Securities failed to establish and maintain a supervisory system reasonably designed to ensure compliance with fair pricing obligations. Effective supervision is the first line of defense against pricing abuses, and firms are required under FINRA Rules 3110 and 3120 to implement written supervisory procedures that address fair pricing reviews. Without proper supervisory systems, unfair pricing practices can go undetected and uncorrected, resulting in ongoing harm to customers.The $90,000 fine and nearly $45,000 in restitution ordered in this case reflect both the pricing violations and the supervisory failures that allowed them to occur. The restitution is designed to make harmed customers whole by returning the excess amounts they were charged.This case offers important lessons for bond investors. Unlike stocks, which trade on exchanges with readily visible prices, bonds often trade in less transparent over-the-counter markets. This makes it harder for individual investors to determine whether they are receiving fair prices. Investors should compare prices across multiple dealers when possible, review trade confirmations carefully, and be aware that both the purchase price and the sale price of a bond can be affected by markups and markdowns. Firms have a clear obligation to price bonds fairly, and FINRA actively monitors and enforces these requirements to protect investors in the fixed-income markets. (FINRA Case #2021070609301)