The Financial Industry Regulatory Authority has fined the US Financial Media $ 1.6 million for multiple compliance failures.
It is said that failures include insufficient supervision of paid influencers and widespread detection nudities that affect millions of customers.
Finra said that webul failed to oversee or preserve promotional records by more than 400 social media effects paid between January 2019 and DECEMBER 2022.
They add that some content contains exaggerated claims and deleted the main disclosures of the risks related to margin and options.
The organizer found that the Webul campaign in marketing has violated the Finra rules on communications with the public, on supervision, and preserving the books. Finra also cited violations of the stock exchange law.
In addition, they claim that the company has failed to provide the required CRS model to about 5.9 million retail customers between June 2020 and December 2022.
It is claimed that webul did not keep records of delivery or implementation of supervisory procedures to ensure compliance.
Webull did not recognize the results and did not deny it, but it agreed to enter the Finra, which includes blame alongside the cash penalty.
Webul was founded in 2018, and it has grown quickly by offering commission -free trading to retail customers. The company was registered in the United States and made changes to its compliance framework in response to the results of the Finra.