Crown Capital Securities has agreed to pay a $50,000 fine as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From January 2014 to December 2019, Crown Capital Securities failed to reasonably supervise transactions that the firm’s registered representatives placed directly with product sponsors on behalf of firm customers (i.e., direct business transactions).
Crown Capital Securities did not take steps reasonably designed to ensure that direct business transactions appeared on the firm’s daily trade blotter, causing the firm to fail to run approximately 9,000 transactions through exception reports used to identify potential sales practice violations.
As a result of the foregoing, Crown Capital Securities violated NASD Rule 3010 and FINRA Rules 3110 and 2010.
On top of the $50,000 fine, the firm has agreed to a censure. It will also pay restitution of $116,390.58 plus interest.
Crown Capital Securities has been a FINRA member since 1972. The firm provides retail brokerage and wealth management services to individuals. The firm is headquartered in Orange, California and, during the relevant period, had approximately 150 branch offices and more than 300 registered representatives.
