Company: BCG
Filing Date: 2025-02-14
Form Type: S-1
Source: 0001410578-25-000143
Chunk: 16

Company: Binah Capital Group, Inc.
Filing Date: 2025-02-14
Form: S-1
Chunk 16
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 some of whom tend to be located in small, decentralized offices, present additional challenges, particularly in the case of complex products or supervision of outside business activities. We also cannot assure that misconduct or errors by our employees or advisors will not lead to a material adverse effect on our business, or that our errors and omissions insurance will be sufficient to cover such misconduct or errors. Misconduct by our advisors, who operate in a decentralized environment, is difficult to detect and deter and could harm our business, reputation, results of operations or financial condition. Even though our advisors are typically not our direct employees, we may be held liable for their misconduct that results in violations of law, regulatory sanctions and/or serious reputational or financial harm. Misconduct could include:

| ● | recommending transactions that are not suitable for the client or in the client’s best interests; |

| ● | engaging in fraudulent or otherwise improper activity; |

| ● | binding us to transactions that exceed authorized limits; |

| ● | hiding unauthorized or unsuccessful activities, resulting in unknown and unmanaged risks or losses; |

| ● | improperly using or disclosing confidential information; |

| ● | failure, whether negligent or intentional, to effect securities transactions on behalf of clients; |

| ● | failure to perform reasonable diligence on a security, product or strategy; |

| ● | failure to supervise a financial advisor; |

| ● | failure to provide insurance carriers with complete and accurate information; |

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| ● | engaging in unauthorized or excessive trading to the detriment of clients; |

| ● | engaging in improper transactions with clients; or |

| ● | otherwise not complying with laws or our control procedures. |

We cannot always deter misconduct by our advisors, and the precautions we take to prevent and detect this activity may not be effective in all cases. Also, our failure to properly investigate new and existing advisors may subject us to additional risks and liabilities. Poor performance of the investment products and services recommended or sold to our clients or competitive pressures on pricing of such products and services may have a material adverse effect on our business. Our advisors’ clients control their assets maintained with us. These clients can terminate their relationships, reduce the aggregate amount of assets under management or shift their funds to other types of accounts with different rate structures for any number of reasons, including investment performance, changes in prevailing interest rates, financial market performance, competitive pricing and personal client liquidity needs. Poor performance of the investment products and services recommended or sold to such clients relative to the performance of other products available in the market or the performance of