Broker Fined for Omitting Negative Information on Form CRS

A broker-dealer settled charges with FINRA for omitting required negative information on its Form CRS.

In a Letter of Acceptance, Waiver and Consent ("AWC"), FINRA found that the broker-dealer failed to disclose on its Form CRS that a number of its financial professionals had a disciplinary history. The firm also failed to disclose all conflicts of interest and failed to disclose that a control affiliate has legal or disciplinary history. As a result, FINRA concluded that the broker-dealer violated Exchange Act Section 17(a)(1) ("Records and Reports"), Exchange Act Rule 17a-14 ("Form CRS, for preparation, filing and delivery of Form CRS") and FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker-dealer agreed to (i) a censure, (ii) pay a $10,000 fine and (iii) comply with the undertaking set forth in the AWC.