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TRADE-PMR INC. * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-16-8170-S |
I. PRELIMINARY STATEMENT
II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Trade-PMR Inc., through its execution of this Consent Order, voluntarily waives the following rights:
1. | To be afforded notice and an opportunity for a hearing within the meaning of Sections 36b-15 and 36b-27 of the Act and Section 4-177(a) of the General Statutes of Connecticut; |
2. | To present evidence and argument and to otherwise avail itself of Sections 36b-15 and 36b-27 of the Act and Section 4-177c(a) of the General Statutes of Connecticut; |
3. | To present its position in a hearing in which it is represented by counsel; |
4. | To have a written record of the hearing made and a written decision issued by a hearing officer; and |
5. | To seek judicial review or otherwise challenge or contest the validity of this Consent Order. |
III. ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS
WHEREAS, Trade-PMR Inc., through its execution of this Consent Order, acknowledges the following allegation of the Commissioner solely for the purpose of settling this matter, without admitting or denying it:
In contravention of Section 36b-31-6f of the Regulations, Trade-PMR Inc. failed to establish, enforce and maintain an effective compliance and supervisory system for monitoring account activity that would have flagged the deduction of excessive client advisory fees from client accounts by a third party investment adviser. |
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Trade-PMR Inc. an opportunity for a hearing;
WHEREAS, this Consent Order is not an acknowledgement or finding of Trade-PMR Inc.’s liability and this Consent Order does not create liability or bases for liability or findings with respect to any person not a party to this Consent Order or for purposes of any private right of action;
WHEREAS, neither this Consent Order nor anything related to it shall toll any statutes of limitations for private civil claims of clients of J. Capital or Johnson;
AND WHEREAS, Trade-PMR Inc. acknowledges the possible consequences of an administrative hearing and voluntarily agrees to the terms of this Consent Order as described below.
IV. CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Trade-PMR Inc., through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
1. | Trade-PMR Inc., its representatives, agents, employees, affiliates, assigns, and successors in interest shall cease and desist from engaging in conduct constituting or which would constitute a violation of the Act or any regulation, rule or order adopted or issued under the Act, either directly or through any person, organization or other device, by failing to establish, enforce and maintain a compliance and supervisory system reasonably designed to monitor account activity that would flag the deduction of excessive, undisclosed client advisory fees from client accounts by third party investment advisers; | |||||||||
2. | Trade-PMR Inc. shall establish, implement and maintain revised written supervisory procedures and update its supervisory systems in order to enhance its procedures in monitoring fee deductions authorized by third party investment advisers to ensure compliance with applicable securities laws and regulations; | |||||||||
3. |
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4. | In the event of nonperformance or violation by Trade-PMR Inc. of any term or condition addressed to it as set forth in this Consent Order, all of the allegations in this Consent Order are deemed admitted by Trade-PMR Inc. for the purposes of any and all matters and/or actions by and between the Commissioner and Trade-PMR Inc., and Trade-PMR Inc. knowingly, willfully and voluntarily waives its right to notice and an administrative hearing in conjunction therewith. |
V. CONSENT ORDER
NOW THEREFORE,
the Commissioner enters the following:1. | The Sanctions set forth above be and are hereby entered; |
2. | Entry of this Consent Order by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Trade-PMR Inc. based upon a violation of this Consent Order by Trade-PMR Inc. or the matters underlying its entry if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by Trade PMR Inc. and set forth herein is subsequently discovered to be untrue; |
3. | Trade-PMR Inc. shall not take any action or make or permit to be made any public statement, including in regulatory filings, any proceeding in any forum or otherwise, denying, directly or indirectly, any allegation referenced in this Consent Order or create the impression that this Consent Order is without factual basis; |
4. | Trade-PMR Inc. shall not take any position in any proceeding brought by or on behalf of the Commissioner, or to which the Commissioner is a party, that is inconsistent with any part of this Consent Order. Nothing is this provision affects Trade-PMR Inc.’s (i) testimonial obligations; or (ii) right to take a legal or factual position in litigation or other legal proceeding in which the Commissioner is not a party; |
5. | Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action against Trade-PMR Inc. and/or its affiliates and successors in interest based upon evidence of which the Division was unaware on the date hereof relating to a violation of the Act, Regulations or order under the Act; and |
6. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut, | ____/s/_____________ | |
this 7th day of July 2016. | Jorge L. Perez | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Robb W. Baldwin, state on behalf of Trade-PMR Inc., that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Trade-PMR Inc.; that Trade-PMR Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Trade-PMR Inc. consents to the entry of this Consent Order.
Trade-PMR Inc.
_____/s/______________________
By:
Robb W. Baldwin
President and Chief Executive Officer
On this the 7 day of July 2016, before me, the undersigned officer, personally appeared Robb W. Baldwin, who acknowledged himself to be the President and Chief Executive Officer of Trade-PMR Inc., and that he, as such President and Chief Executive Officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself as President and Chief Executive Officer.
____/s/____________________________ |
Notary Public |
Date Commission Expires: April 13, 2018 |