The Department of Banking News Bulletin
Bulletin # 2436
Week Ending October 29, 2010
This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.
SECURITIES AND BUSINESS INVESTMENTS DIVISION
On October 26, 2010, the Banking Commissioner entered a Consent Order with respect to JHS Capital Advisors, Inc., a Connecticut-registered broker-dealer located at 400 North Ashley Drive, Suite 2150, Tampa, Florida. The Consent Order alleged that, from at least January 1, 2008 through March 31, 2010, the firm charged its Connecticut customers a “postage and handling” fee which it failed to itemize and disclose on trade confirmations supplied to those customers. The Consent Order also alleged that such conduct would support proceedings under Section 36b-15(a)(2)(H) of the Connecticut Uniform Securities Act to suspend or revoke the firm’s Connecticut registration or to restrict the firm’s Connecticut securities activities.
The Consent Order fined the firm $10,000. With respect to transactions effected between January 1, 2008 and March 31, 2010, the Consent Order also directed JHS Capital Advisors, Inc. to reimburse affected Connecticut customers the difference between the “postage and handling” fee paid for each transaction and the actual amount of the firm’s ticket and clearing charge and the postage fee assessed by the clearing firm. The Consent Order also required that the firm cease and desist from regulatory violations.
Dated: Tuesday, November 2, 2010
Howard F. Pitkin