A firm settled FINRA charges for conducting a securities business while failing to maintain its minimum net capital as required pursuant SEA Rule 15c3-1 ("Net Capital Requirements for Brokers or Dealers").
According to the Letter of Acceptance, Waiver, and Consent, FINRA found that the firm also failed to include certain expenses in its calculation of its net capital and inaccurately disclosed the date on which the net capital deficiency began. As a result, FINRA found that the firm violated SEA Sections 15(c) and 17(a), SEA Rules 15c3-1 ("Net capital requirements for brokers or dealers") and 17a-11 ("Notification provisions for brokers and dealers"), and FINRA Rules 4110(b) ("Capital Compliance") and 2010 ("Standards of Commercial Honor and Principles of Trade").
To settle the charges, the firm agreed to (i) a censure and (ii) a $5,000 fine. (FINRA stated that it imposed a minimal fine due to the firm's revenues and financial resources.)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.