NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

A.B.Watley Direct, Inc.
OS/2005003391301

The Firm's website and television advertisements contained statements and claims that were misleading, exaggerated or unwarranted, and failed to provide a sound basis for evaluating the facts in regard tothe services offered. The firm claimed in public communications that it offered low commission rates, but failed to clearly disclose that the rates were only available to customers who placed a certain amount of trades the previous month, and the claim was misleading in light of the actual commission rates and fees it charged the majority of its customers. FINRA advised the firm that its television advertisements included misleading commission rate information, but nevertheless, the firm ran the TV advertisements without altering the material. The TV advertisements did not disclose any limitations or restrictions related to the stated commission rates. The website made various misleading claims regarding the speed of execution and level of market access the firm provided to clients. The homepage included a ranking by Barron’s, but failed to provide sufficient information to evaluate the rating or criteria on which it was based.

A.B.Watley Direct, Inc. : Censured; Fined $20,000; Required to file all sales literature and advertisements with FINRA’s Advertising Regulation Department at least 10 days prior to their first use for one year from the date of this order.

Tags: Website  television