FINRA Fines SWBC Investment Services for Net Capital Violations

SWBC Investment Services, LLC has agreed to a $25,000 fine and a censure in a settlement with the Financial Industry Regulatory Authority (FINRA). The action stems from the firm's failure to maintain its minimum required net capital while conducting a securities business over a 16-business-day period in February and March 2024.

This conduct violated Section 15(c)(3) of the Securities Exchange Act of 1934, Exchange Act Rule 15c3-1, and FINRA Rules 4110(b)(1) and 2010. Furthermore, from December 2023 to March 2024, SWBC failed to maintain accurate books and records for its net capital calculations.

The firm also filed inaccurate Financial and Operational Combined Uniform Single (FOCUS) reports with FINRA from December 2023 through February 2024, and neglected to file required deficiency notices with the SEC and FINRA when its capital fell below the minimum. These additional failures constitute violations of Exchange Act § 17(a), Rules 17a-3, 17a-5, and 17a-11, and FINRA Rules 4511 and 2010.

SWBC, a FINRA member since 2005, is headquartered in San Antonio, Texas, and operates five branches with approximately 30 registered representatives. The firm primarily engages in proprietary and institutional trading of fixed income securities.