Broker-Dealer Settles NYSE Charges for Minimum Net Capital Failures

A broker-dealer settled NYSE charges for failing to maintain the required minimum net capital and failing to preserve business communications.

According to the NYSE American LLC AWC and the NYSE LLC AWC, the firm fell below its net capital requirement of $5,000 on more than one hundred days since January 2022. In addition, the firm failed to timely notify the appropriate regulators of its net capital deficiency on one occasion and failed to have reasonable supervision in place to ensure that the firm remained net capital compliant. The firm also failed to preserve certain business communications sent and received using a personal email address and did not have reasonable supervision in place to ensure that the firm preserved all business communications.

NYSE American and NYSE found that the firm violated SEA Sections 15(c) ("Registration and regulation of brokers and dealers") and 17(a) ("Records and Reports"), SEA Rules 15c3-1 ("Net capital requirements for brokers or dealers") and 17a-11 ("Notification provisions for brokers and dealers"), NYSE Rule 4110(b) ("Capital Compliance") and NYSE American Rules 324, 3110(a) and (b) ("Supervision").

To settle the charges, the firm agreed to (i) a censure and (ii) a $20,000 total fine.