Creand Securities has agreed to pay a fine of $115,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From October 2019 to February 2020, Creand failed to accurately calculate its required customer reserve on five separate occasions, resulting in four hindsight deficiencies ranging from approximately $1.3 million to $13.4 million and totaling approximately $27.8 million.
The firm’s failure to accurately calculate its customer reserve obligations caused the firm to file five inaccurate Financial and Operational Combined Uniform Single (FOCUS) reports and to maintain inaccurate books and records regarding its customer reserve.
As a result of the foregoing, Creand violated Sections 15(c) and 17(a) of the Securities Exchange Act of 1934, Exchange Act Rules 15c3-3, 17a-3, 17a-4, and 17a-5, and FINRA Rules 4511 and 2010.
From October 2019 to the present, Creand also failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with the Exchange Act rules relating to customer reserve requirements in violation of FINRA Rules 3110 and 2010.
On top of the fine, the firm has agreed to a censure.
Creand Securities, a FINRA member since November 1995, is a self-clearing broker-dealer that offers retail trading in equities and corporate bonds to a mostly foreign customer base.
