The Benchmark Company

Kurta Law is investigating recommendations by The Benchmark Company, LLC (CRD#: 22982) brokers. The Benchmark Company is a brokerage firm based in New York, New York.

The Benchmark Company, LLC has also operated under the following names:

• Benchmark-Pellinore Group
• The Benchmark Company, Inc.
• Pellinore Securities Corporation

Fees and Conflicts of Interest

Broker-dealers are required to provide investors with disclosures relating to their conflicts of interest and the fees they charge. The Benchmark Company discloses the following formation in its Customer Relationship Summary (Form CRS):

• Investors will pay fees on each transaction, including commissions and their equivalents, markups/markdowns, spreads, and sales charges. These fees typically depend on the total value of your transaction.
• Some securities may charge separate fees which are described in their prospectuses or other offering documents.
• The revenue The Benchmark Company earns through its investment banking services may create a conflict of interest when it comes to trade recommendations.
• Similarly, the firm’s research analysts may publish reports on companies with whom The Benchmark Company has an investment banking relationship.

Broker-Dealer Services

The Benchmark Company operates as a brokerage, research, and investment banking firm. It primarily provides brokerage services to institutional investors and a select number of retail investors.

The firm allows retail investors to invest in public securities offerings as well as private funds and other private placements. Private offerings can be especially risky for investors because they are not required to register with the SEC or provide certain disclosures.

Regulatory Actions

The Benchmark Company has been the subject of several FINRA fines over the years, according to its detailed BrokerCheck page.

FINRA Fine

On December 1, 2023, The Benchmark Company consented to the entry of findings that it allegedly failed to establish and enforce policies and procedures reasonably designed to control the dissemination of potentially material nonpublic research information.

According to a Letter of Acceptance, Waiver & Consent (AWC), the firm allegedly failed to reasonably address the risk that its research notes could be misused by the firm’s sales and trading personnel or that these personnel might disseminate this information to external parties.

FINRA censured the firm and fined it $450,000. You can read the AWC here.

Alleged Failure to Report ROEs

On November 20, 2017, an AWC alleged that The Benchmark Company failed to transmit at least 1,224,295 Reportable Order Events (ROEs) to the Order Audit Trail System (OATS) from January 1, 2011, through February 10, 2016.

The AWC further alleged that the firm’s supervisory system was not reasonably designed to achieve compliance with relevant securities laws and regulations or with FINRA rules regarding accurate OATS reporting.

The Benchmark Company consented to a censure, a $30,000 fine, and to undertake a revision of its Written Supervisory Procedures (WSPs). You can access the full AWC here.

How Can Investors Recover Lost Funds from a Brokerage Firm?

If you have concerns about your broker’s conduct, you may be able to recover your losses by seeking out FINRA arbitration. This is a quicker alternative to civil court, and a securities attorney can help you navigate the process.

Kurta Law Can Help

Investors who lost money working with a The Benchmark Company broker should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.