National Securities Corp Pays $125k Fine to Settle with FINRA

​National Securities Corporation, a general securities business headquartered in Boca Raton, Florida, has reached a settlement agreement with the Department of Enforcement Financial Industry Regulatory Authority (FINRA) to pay $125k to resolve civil charges concern violations of rules that treat the filings of reports about customer complaints.

Between May 2015 and November 2018, National Securities filed four late amendments to Forms U4 and eight late amendments to Forms U5 relating to reportable customer complaints and an unsatisfied judgment.

The firm knew about each of these events but was between one month and two years late in disclosing them, with an average delay of more than 13 months, and often did not disclose them until after FINRA inquiry. The firm also failed to file five Form U4 amendments relating to reportable customer complaints during this period.

Further, the firm failed to comply with its reporting obligations under FINRA Rule 4530. The firm reported a $30,000 settlement of a customer’s claim for damages against one of its associated persons for sales practice violations a year late.

The firm failed to report, or failed to report timely, statistical and summary information to FINRA regarding 19 written customer complaints. In addition, the firm submitted 34 inaccurate or incomplete filings required by FINRA Rule.

The firm also failed to enforce written supervisory procedures relating to its reporting obligations and establish, maintain, and enforce written supervisory procedures relating to contingency offerings.

Respondent consents to the imposition of a censure and a fine of $125,000.