NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.
v
AWC/2010021236201
Elevation commenced an options business, engaged in
options transactions and
designated an individual as its Registered Options Principal (ROP)
until his resignation
from the firm. The firm did not notify
FINRA of his resignation
but instead continued to engage in options business without
registering a new ROP. The firm failed to establish, maintain
and enforce an adequate
supervisory system for its options activities, including written
procedures, reasonably
designed to achieve compliance with application securities regulations,
and to supervise
options transactions in which it engaged. Thefirm failed
to comply with multiple requirements of FINRA Rule 2360, the
options rule, by failing
to comply with its registration and customer agreement
requirements.
v: Censured; Fined $10,000