NASSAU, BAHAMAS – Bahamian broker/dealer SureTrader has announced its exit from the brokerage industry.
Guy Gentile’s online broker SureTrader, an affiliate of his Swiss America Securities firm, revealed over the weekend that it was closing down in a post that quickly went viral.
Gentile started SureTrader in 2011.
While Gentile did not immediately respond to emailed inquires by Eyewitness News, a notice to clients claimed SureTrader’s clearing broker had changed the terms of its relationship without “notice and reason”.
Clients were given the option to transfer to a new broker called F1TRADE unless opted out, in the notice obtained by Eyewitness News .
F1TRADE is said to offer similar services to SureTrader, although no website of the company could be found.
If clients chose to opt out they would be required to withdraw the balance on their accounts by bank wire.
SureTrader.com is listed with and regulated by the Securities Commission of The Bahamas. Back in September Swiss America Securities had its registration under the Securities Industry Act suspended for five days by the Commission.
Swiss America Securities Ltd. was fined a total of $120,000 last year for several breaches in customer due diligence processes and record-keeping procedures.
These included breaches in maintaining documents and records; verifying client accounts; conducting know your customer protocols; conducting risk monitoring of clients; delivering details of insurance coverage; obtaining written consent for transactions affecting financial resources; notifying the SCB of outsourcing agreement; and notifying the SCB of a name change for SASL and not notifying that name change at a meeting.
Gentile has also been engaged in a long-running battle with the SEC over multiple allegations that he and Swiss America/SureTrader violated US securities laws, claims he has strongly denied.
