USCA Securities has been fined $75,000 by the Financial Industry Regulatory Authority (FINRA) for multiple violations, including failing to maintain its required minimum net capital and submitting inaccurate financial reports.
USCA Securities Hit With FINRA Fine
USCA Securities has been fined $75,000 by the Financial Industry Regulatory Authority (FINRA) for multiple violations, including failing to maintain its required minimum net capital and submitting inaccurate financial reports.
According to a Letter of Acceptance, Waiver, and Consent published by FINRA, USCA operated below its required net capital on 35 occasions between January and September 2022.
The firm also filed eight inaccurate Financial Operational Combined Uniform Single (FOCUS) reports from December 2021 through July 2022, overstating its net capital by amounts ranging from $38,965 to over $1 million.
Additionally, FINRA found that USCA failed to implement proper supervisory systems to ensure compliance with net capital requirements.
FINRA continued that the firm’s written supervisory procedures (WSPs) did not provide adequate guidance on net capital calculations, nor did they include restrictions on fund transfers that could affect capital levels.
The violations stemmed from errors in calculating net capital requirements for firm commitment offerings, misstatements in financial records, and a $4.87 million fund transfer to the firm’s parent company that created a receivable exceeding net capital limits.
As part of the settlement, USCA accepted FINRA’s findings without admitting or denying the charges. The firm has since updated its supervisory procedures.
The sanctions include a censure as well as a financial penalty.
