Creand Securities agreed to pay a $115,000 fine as 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 subsequent shortfalls ranging from approximately $1.3 million to $13.4 million and a total of approximately $27.8 million.
The company’s failure to accurately calculate its customer reserve obligations caused the company to file five inaccurate Financial and Operating Combined Consolidated Consolidated (FOCUS) reports and 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 Rule 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’s rules regarding customer reserve requirements in violation of FINRA Rules 3110 and 2010.
In addition to the fine, the company agreed to a reprimand.
Creand Securities, a member of FINRA since November 1995, is a self-clearing broker-dealer offering retail trading in stocks and corporate bonds to a primarily foreign client base.