On Friday, the Financial Industry Regulatory Authority (FINRA) said it had fined Spartan Capital Securities, LLC $115,000 for delays in responding to FINRA Rule 8210 requests.
Spartan Capital Fined for Delayed Responses to FINRA Requests
The company is said to have failed to respond in a timely manner to multiple requests for information.
The fines stem from three separate incidents between June 2021 and August 2023. In each case, FINRA said it requested information from Spartan Capital as part of an investigation, but the brokerage firm failed to meet the deadlines for providing the requested documents and details.
According to FINRA, Spartan Capital’s delays included incomplete responses and missing crucial information, forcing FINRA to initiate expedited proceedings to force a response on three separate occasions.
FINRA added that the proceedings could have resulted in the suspension of Spartan Capital’s membership.
The regulator said that on more than one occasion, one day before a suspension was set to take effect, Spartan provided partial but incomplete responses, which “did not fully address the requests about due diligence, sales of investments, and compensation.”
The investigation focused on Spartan Capital’s sales of unregistered private funds and the firm’s net capital calculations, including non-allowable assets like non-cash compensation.
In addition to the fine, Spartan Capital has agreed to undergo a comprehensive review of its compliance with FINRA’s regulations by an independent consultant, as well as implement the recommendations to improve its systems and processes for responding to regulatory requests.
