From February 2021 through the present, AAG Capital failed to establish and maintain written policies and procedures and a supervisory system reasonably designed to comply with Securities Exchange Act of 1934 Rule 15l-1 (Regulation Best Interest or Reg BI) for recommendations to retail customers regarding registered index-linked annuities (RILAs).

Malm accepted a bequest from the estate of a customer who was not his immediate family member without having provided his firm with written notice and without his firm having given him approval to do so. As a result, Malm violated FINRA Rules 3241 and 2010 and is suspended in all capacities for seven months and fined $10,000.

From May 2016 to October 2022, MDB Capital failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to address certain conflicts of interest and to prevent the misuse of material non-public information (MNPI). Therefore, the firm violated FINRA Rules 3110 and 2010. The firm consents to a censure, a fine of $50,000, and an undertaking to remediate the issues identified in this AWC.