Webull Fined $1.6M by FINRA Over Supervision and Disclosure Failures

Webull fined $1.6 million by FINRA for failing to supervise influencer marketing and mishandling Form CRS delivery.

Key Points:

• Webull failed to supervise influencer communications and retain records, violating multiple FINRA and SEC rules.
• The firm also did not timely deliver Form CRS to clients or maintain proper compliance systems.

Webull Financial LLC has agreed to pay a $1.6 million fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA) over a series of supervisory and compliance failures spanning multiple years.

According to FINRA, between January 2019 and December 2022, Webull failed to reasonably supervise and retain communications made by social media influencers promoting the firm. Some of these influencer communications included exaggerated claims or unbalanced representations, violating FINRA Rules 2210, 2220, 3110, 4511, and 2010, as well as provisions under the Securities Exchange Act of 1934, including §17(a) and Rule 17a-4.

Webull Fined $1.6M by FINRA Over Supervision and Disclosure Failures

FINRA also found that from June 2020 through December 2022, Webull failed to timely deliver Form CRS — a key customer relationship summary — to certain clients. The firm did not make or preserve the required documentation and lacked an adequate supervisory system to ensure compliance with these regulatory obligations. These lapses led to further violations of Exchange Act Rules 17a-3, 17a-4, 17a-14, and multiple FINRA rules.

As part of the settlement, Webull was censured in addition to the monetary penalty. The firm did not admit nor deny the charges but consented to the entry of FINRA’s findings.

Webull, a FINRA member since January 2018, launched its trading platform in May of the same year. Known for its mobile-first approach, the firm offers self-directed trading services to retail investors across the U.S. Headquartered in New York, the company operates three branch offices and employs approximately 100 registered representatives.

The settlement underscores FINRA’s continued scrutiny of how financial firms use emerging marketing channels, particularly social media, and their responsibility to ensure all customer communications meet regulatory standards.

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