The Chicago-based broker-dealer also failed to timely file documents tied to six private placement offerings, regulators said.

April 28, 2026

Andes Capital Group, LLC has reached a settlement with the Financial Industry Regulatory Authority (FINRA), agreeing to pay a $25,000 fine in connection with alleged compliance shortcomings tied to Regulation Best Interest.

The Chicago-based broker-dealer, a FINRA member since 2006, was cited for failing to establish, maintain, and enforce written supervisory policies and procedures reasonably designed to achieve compliance with Rule 15l-1(a)(1) under the Securities Exchange Act of 1934 — better known as Reg BI. According to the regulator, those deficiencies date back to June 30, 2020 and have continued through the present, putting the firm in violation of Reg BI along with FINRA Rules 3110 and 2010.

Background on Reg BI

Reg BI, which took effect in mid-2020, requires broker-dealers to act in the best interest of retail customers when recommending securities transactions or investment strategies. The rule also obligates firms to build out supervisory frameworks capable of backing up those obligations in practice. Regulators have increasingly trained their attention on whether smaller broker-dealers have the written procedures in place to satisfy the rule.

Private Placement Filing Lapses

Beyond the supervisory issues, FINRA also flagged shortcomings in the firm’s private placement activity. Between December 2021 and August 2023, Andes Capital participated in six private placement offerings but failed to submit required documentation to FINRA on time, running afoul of FINRA Rules 5123 and 2010.

Terms of the Settlement

Under the settlement, Andes Capital has agreed to:

• A formal censure
• A monetary penalty of $25,000
• An undertaking aimed at addressing the identified compliance deficiencies

About the Firm

Andes Capital operates primarily in the private placement space, with that business line accounting for the bulk of its activity. The firm is headquartered in Chicago, Illinois, and currently maintains 36 registered representatives across two branch offices.

A Broader Regulatory Theme

The action underscores continued regulatory scrutiny of how broker-dealers — particularly those concentrated in private placement distribution — document and supervise their compliance obligations under Reg BI. It also reflects FINRA’s ongoing enforcement focus on timely filing requirements under Rule 5123, which is designed to give regulators visibility into private securities transactions marketed to retail investors.