For example, the firm approved more than 2,500 customers under the age of 21 to trade options spreads, even though the firm’s eligibility criteria required customers to have at least three years of options trading experience before being approved for that trading level.
FINRA also discovered that Webull’s system for identifying and responding to customer complaints was not appropriately designed, and the broker did not allocate sufficient resources and staff to handle the backlog of customer communications and complaints it received.
The regulator then added:
The firm also failed to report certain customer complaints to FINRA as required. This included complaints that were based on theft or misappropriation.
FINRA has recently sanctioned a number other brokerage firms such as UBS Securities, among others.
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