The Financial Industry Regulatory Authority (FINRA) has fined LifeSci Capital $900,000 for multiple violations, including the receipt of unreasonable underwriting compensation and failure to meet regulatory requirements during public offerings.
FINRA Fines LifeSci Capital $900,000
The regulator said in a filing that the New York-based firm, specialising in underwriting, has also been censured and required to implement a supervisory system to address these shortcomings.
The fine stems from LifeSci Capital’s role as lead underwriter in the initial public offering of LifeSci Acquisition II Corp., a special purpose acquisition company (SPAC), in 2020.
FINRA found that the underwriting compensation received was excessive and inaccurately disclosed in both offering documents and regulatory filings.
Additionally, LifeSci failed to file required documents with FINRA in a timely manner on multiple occasions between 2020 and 2023.
FINRA adds that the firm also lacked a supervisory system to ensure compliance with FINRA’s Corporate Financing Rule, which prohibits unfair underwriting practices.
According to FINRA, LifeSci’s written supervisory procedures failed to address key compliance measures, despite underwriting being a core part of its business.
LifeSci Capital, a FINRA member since 2014, has accepted the sanctions without admitting or denying the findings.
