Renaud & Company, Llc

Allegations: THE STATE OF MISSOURI DIVISION OF SECURITES ALLEGED THAT AFTER ITS CONVERSION FROM A SOLE PROPRIETORSHIP TO A LIMITED LIABILITY COMPANY, RENAUD & COMPANY AND ITS OWNER WERE INCORRECTLY REGISTERED DURING PARTS OF 2011 AND 2012. Status: Final Sanction Detail: REIMBURSEMENT OF AUDIT COSTS OF $6,000 AND REIMBURSEMENT OF SURRENDER PENALTY OF $5,226 PAID 08/07/2012. PAYMENT OF $5,000 TO MO INVESTOR EDUCATION AND PROTECTION FUND SUSPENDED PENDING NO VIOLATIONS FOR THREE YEARS. Summary: IN EARLY 2011, MATTHEW RENAUD CONVERTED RENAUD & CO FROM A SOLE PROPRIETORSHIP (BY WHICH THE FIRM HAD OPERATED SINCE ITS INCEPTION) TO A LIMITED LIABILITY CORPORATION (LLC). THE FIRM HOWEVER UNKNOWINGLY FAILED TO UPDATE ITS MISSOURI INVESTMENT ADVISER REGISTRATION UNTIL EARLY 2012. CONSEQUENTLY, FROM EARLY 2011 THROUGH EARLY 2012, THE FIRM WAS INCORRECTLY REGISTERED AS A SOLE PROPRIETORSHIP, WHEN THE FIRM SHOULD HAVE BEEN REGISTERED AS AN LLC. IN ADDITION, MR. RENAUD SHOULD HAVE ALSO BECOME REGISTERED SEPARATELY AS AN INVESTMENT ADVISER REPRESENTATIVE OF THE LLC WHEN THE FIRM CONVERTED TO AN LLC. AFTER LEARNING OF THE REGISTRATION OVERSIGHT, THE FIRM UPDATED ITS REGISTRATION AND THAT OF MR. RENAUD. AFTER CONDUCTING ITS AUDIT OF RENAUD & COMPANY, THE MISSOURI SECURITIES DIVISION IN AUGUST OF 2012 CENSURED MR. RENAUD AND THE FIRM FOR THE REGISTRATION OVERSIGHT, REQUIRED THE FIRM TO REIMBURSE THE DIVISION FOR AUDIT COSTS, AND REQUIRED THE FIRM TO REIMBURSE A CLIENT FOR A FIXED ANNUITY SURRENDER PENALTY AND OTHER ASSOCIATED COSTS INCURRED BY THAT CLIENT DURING THE PERIOD THE FIRM WAS INCORRECTLY REGISTERED. AN ADDITIONAL PAYMENT TO THE MISSOURI SECRETARY OF STATE'S INVESTOR EDUCATION AND PROTECTION FUND WAS ORDERED BUT HAS BEEN SUSPENDED PROVIDED THE FIRM DOES NOT VIOLATE THE MISSOURI SECURITIES ACT FOR A PERIOD OF THREE YEARS.