XP Investments US, LLC has agreed to pay a fine of $225,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From June 2017 through February 2018, XP recommended three private placements to its customers without conducting reasonable due diligence, and thus without satisfying its reasonable-basis suitability obligation in violation of FINRA Rules 2111 and 2010. During this period, the firm also did not establish and maintain a supervisory system reasonably designed to achieve compliance with FINRA Rule 2111 in violation of FINRA Rules 3110 and 2010.
Additionally, from March 2020 to October 2021, XP did not establish and maintain a supervisory system reasonably designed to achieve compliance with FINRA Rule 5210, which prohibits non-bona fide trading, in violation of FINRA Rules 3110 and 2010.
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