Firm Fined for Inadequate Responses to Requests for Information on Private Funds

A firm settled FINRA charges for failing to provide documents and information requested during regulatory investigations into its business practices.

According to the AWC, the firm delayed responses to multiple requests that were a part of FINRA's investigation into the firm's handling of private fund offerings, net capital calculations and related compliance matters. FINRA said that, despite receiving three expedited proceedings for its delays, the firm's responses remained incomplete.

As a result, FINRA stated that the firm violated Rules 8210 ("Provision of Information and Testimony and Inspection and Copying of Books"), 3110(a) ("Supervision") and 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the firm agreed to (i) a censure, (ii) pay a $115,000 fine and (iii) an undertaking to hire an independent consultant to assess and strengthen its compliance systems for handling regulatory requests.