Banorte-Ixe Securities complies with terms and conditions of the Letter of Acceptance Waiver and Consent (AWC) issued by FINRA
Jan 28, 2014
OTC Disclosure News Service
Grupo Financiero Banorte, S.A.B. de C.V. (“GFNORTE”) (BMV: GFNORTEO) informs the investment public that Banorte-Ixe Securities International, Ltd. (?Banorte-Ixe Securities – BSI?) has accepted the terms and conditions of the Letter of Acceptance Waiver and Consent (?AWC?) issued by the Financial Industry Regulatory Authority (?FINRA?) in the U.S. BSI is a ? subsidiary of Casa de Bolsa Banorte Ixe, S.A. de C.V. (?Casa de Bolsa Banorte Ixe?), which in turn is a subsidiary of GFNORTE.
FINRA observed two primary regulatory deficiencies in some of BSI?s policies and processes: i) non-compliance with National Association of Securities Dealers (?NASD?) rules 1031 and 2110 and FINRA rule 2010 regarding the registration of foreign finders1; and ii) an inadequate compliance program pursuant to NASD rules 3011 and 2110 and FINRA rules 3310 and 2010.
As a result of these deficiencies, FINRA imposed a fine on BSI of US 475,000 dollars, which will be paid in full by BSI.
In this respect, GFNORTE’s management is permanently committed to complying with the applicable regulations in all the jurisdictions where its affiliates operate. Thus corrective actions to internal policies and procedures have been implemented in order to comply with the regulatory requirements of U.S. authorities, which have increasingly scrutinized the businesses of financial institutions in Latin American. GFNORTE’s management acknowledges that any deficiency is unacceptable, and therefore has enhanced its systems in order to correct the areas cited by the regulator.
GFNORTE and BSI remain committed to providing their Mexican clients with world class services and products that satisfy their particular financial needs in the U.S. markets, but always under the premise of comprehensively complying with the applicable regulations in the U.S. and in cooperation with its authorities. This was recently demonstrated by the fulfillment of all the requirements imposed by the formal agreement established by the Office of the U.S. Comptroller of the Currency (?OCC?) with INB Financial Corp (?INB?)(Inter National Bank), a subsidiary of Banco Mercantil del Norte, S.A. (?Banorte?) with operations in South Texas. In view of the regulatory climate in which GFNORTE companies conduct their businesses, GFNORTE and its affiliates greatly appreciate clients? cooperation in enabling these companies to fulfill their regulatory requirements while continuing to provide first class service to clients.
GFNORTE reiterates to the investment public that it expects to continue adopting the best international corporate practices regarding Corporate Governance and information disclosure. The Financial Group expects to maintain its strategic and expansion plans to consolidate a leading institution in Mexico; in this sense, we will timely inform the investment community regarding the strategy execution and evolution of our operations. The Finance and Investor Relations Department is available for any inquiry or comment regarding this material event at: firstname.lastname@example.org or at the number (55) 22.214.171.124.
1 Foreign Finders: Non-registered foreign persons who refer non-U.S. customers to a FINRA’s member firm. (Source: FINRA-Conduct Of Business Abroad)
This release includes additional documents. Select the link(s) below to view.
Material Event-FINRA AWC 28 ene 2014-(F).pdf
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