NASD Fines Asensio Brokerage Services for
Misleading Reports
Reporting Source: Regulator (Form
U-6)
Date
Reported:
02/10/2005
Initiated
By:
NASD
Date
initiated:
02/06/2004
Docket/
Case
Number:
CAF030067
Allegations: NASD RULES 2110, 2210(D)(1)(B), 2711 -
RESPONDENT
MEMBER,
ACTING THROUGH AN INDIVIDUAL, FAILED TO DEFINE THE MEANING OF
EACH RATING USED IN THE FIRM'S RATING SYSTEM IN
RESEARCH
REPORTS ABOUT A SECURITIES ISSUER AND FAILED TO DISCLOSE THE
PERCENTAGE OF 'BUY," "HOLD/NEUTRAL," OR "SELL"
RATINGS
ASSIGNED BY HIS FIRM IN RESEARCH REPORTS; RESPONDENT MEMBER,
ACTING THROUGH AN INDIVIDUAL, PUBLISHED RESEARCH REPORTS THAT
FAILED TO INCORPORATE A LINE GRAPH PRICE CHART SHOWING
THE
DATES ON WHICH IT MADE RECOMMENDATIONS ON THE SECURITY AND THE
PRICE CHANGES RELATIVE TO THE FIRM'S
RECOMMENDATIONS;
DISCLOSURES OF STOCK OWNERSHIP WERE NOT CLEAR
AND
COMPREHENSIVE IN RESEARCH REPORTS; AND STATEMENTS IN RESEARCH
REPORTS WERE UNWARRANTED OR
MISLEADING.
Current
Status: On
Appeal
Appeal
Details: DECISION APPEALED TO THE NAC ON FEBRUARY 2,
2005.
Resolution:
Decision
Resolution
Date: 01/04/2005
Sanctions
Ordered:
Monetary/Fine
Monetary
Amount:
$20,000.00
Resolution
Details: HEARING PANEL DECISION
RENDERED JANUARY 4, 2005
WHEREIN
RESPONDENT FIRM IS FINED $20,000 FOR ITS FAILURE TO
COMPLY
WITH CONDUCT RULES 2711(H) AND 2210. IN ADDITION,
THE
RESPONDENT FIRM IS JOINTLY AND SEVERALLY ORDERED TO PAY COSTS
IN THE AMOUNT OF $3,147.16, WHICH INCLUDES AN ADMINISTRATIVE
FEE OF $750 AND TRANSCRIPT COSTS OF
$2,397.16.
Summary: