United States:
Firm Settles FINRA Charges For Net Capital Rule Violations
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A firm settled FINRA charges for conducting a
securities business while failing to maintain required minimum net
capital pursuant to SEA Rule
15c3-1 (“Net capital requirements for broker
dealers”).
According to the Letter of Acceptance, Waiver, and Consent,
FINRA found that the firm’s net capital fell below the required
minimum because it incurred certain legal fees. FINRA determined
that the firm also (i) filed with the SEC and FINRA inaccurate
notices of its net capital deficiency, and (ii) failed to maintain
books and records that were accurate with respect to the firm’s
net capital and indebtedness.
FINRA concluded that the firm violated SEA Rule 17a-11 (“Notification provisions for
brokers and dealers”), as well as SEA Rules 17a-3 (“Records to be made by certain
exchange members, brokers and dealers”) and 17a-5 (“Reports to be made by certain
brokers and dealers”). To settle the charges, the
broker-dealer agreed to (i) a censure, and (ii) a $10,000 fine.
Primary Sources
- FINRA AWC: Third Seven Capital
LLC
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