NASD Fines Asensio Brokerage Services for Misleading Reports
 
Reporting Source: Regulator (Form U-6)
         
          Date Reported:    02/10/2005                                                                     
         
          Initiated By:     NASD
         
          Date initiated:   02/06/2004
         
          Docket/
          Case Number:      CAF030067
         
         
          Allegations:  NASD RULES 2110, 2210(D)(1)(B), 2711 - RESPONDENT MEMBER,
                            ACTING THROUGH AN INDIVIDUAL, FAILED TO DEFINE THE MEANING OF 
                            EACH RATING USED IN THE FIRM'S RATING SYSTEM IN RESEARCH      
                            REPORTS ABOUT A SECURITIES ISSUER AND FAILED TO DISCLOSE THE  
                            PERCENTAGE OF 'BUY," "HOLD/NEUTRAL," OR "SELL" RATINGS        
                            ASSIGNED BY HIS FIRM IN RESEARCH REPORTS; RESPONDENT MEMBER,  
                            ACTING THROUGH AN INDIVIDUAL, PUBLISHED RESEARCH REPORTS THAT 
                            FAILED TO INCORPORATE A LINE GRAPH PRICE CHART SHOWING THE    
                            DATES ON WHICH IT MADE RECOMMENDATIONS ON THE SECURITY AND THE
                            PRICE CHANGES RELATIVE TO THE FIRM'S RECOMMENDATIONS;         
                            DISCLOSURES OF STOCK OWNERSHIP WERE NOT CLEAR AND         
                            COMPREHENSIVE IN RESEARCH REPORTS; AND STATEMENTS IN RESEARCH 
                            REPORTS WERE UNWARRANTED OR MISLEADING.                       
         
          Current Status:   On Appeal
         
          Appeal Details:   DECISION APPEALED TO THE NAC ON FEBRUARY 2, 2005.
         
          Resolution:       Decision
         
          Resolution Date:  01/04/2005
         
          Sanctions
          Ordered:        Monetary/Fine

         
          Monetary Amount:  $20,000.00
         
          Resolution
          Details:       HEARING PANEL DECISION RENDERED JANUARY 4, 2005 WHEREIN
                            RESPONDENT FIRM IS FINED $20,000 FOR ITS FAILURE TO COMPLY    
                            WITH CONDUCT RULES 2711(H) AND 2210.  IN ADDITION, THE        
                            RESPONDENT FIRM IS JOINTLY AND SEVERALLY ORDERED TO PAY COSTS 
                            IN THE AMOUNT OF $3,147.16, WHICH INCLUDES AN ADMINISTRATIVE  
                            FEE OF $750 AND TRANSCRIPT COSTS OF $2,397.16.                
         
          Summary: