Signet Securities, LLC has agreed to pay a fine of $100,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From June 30, 2020, through the present, Signet Securities failed to maintain, and enforce written policies and procedures, and failed to maintain a supervisory system reasonably designed to achieve compliance with the firm’s obligation under Regulation Best Interest (Reg BI) to conduct reasonable due diligence of private placement offerings so as to ensure it had a reasonable basis to believe the recommendation could be in the best interest of at least some retail investors.
As a result, the firm willfully violated Rule 15l- 1(a)(1) of the Securities Exchange Act of 1934 and violated FINRA Rules 3110 and 2010.
From January 2020 through the present, the firm failed to maintain and enforce a supervisory system reasonably designed to achieve compliance with FINRA rules governing outside business activities (OBAs).
As a result, Signet Securities violated FINRA Rules 3110, 3270.01, and 2010.
From June 30, 2020, through April 14, 2022, the firm failed to deliver a customer relationship summary (Form CRS) to its customers. Between April 14, 2022, and the present, the firm delivered Form CRS to new customers but failed to deliver Form CRS to existing customers.
By failing to deliver Form CRS to customers, Signet Securities willfully violated Section 17(a)(1) and Rule 17a-14 of the Exchange Act, and FINRA Rule 2010.
The firm also consents to a censure and an undertaking that a member of its senior management who is a registered principal of the firm, shall certify in writing that, as of the date of the certification, the firm has remediated the issues and implemented a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Exchange Act Rule 15l-1(a)(1), and FINRA Rules 3110, 3270.01. The certification must include a narrative description and supporting exhibits sufficient to demonstrate the firm’s remediation and implementation.
