Financial Industry Regulatory Authority (FINRA) has imposed a monetary penalty Crown Capital Securities for almost $19.3 million in transaction-based compensation to unregistered entities.
A FINRA member since 1972, Crown Capital provides financial services to retail brokerages, wealth management and individuals. Headquartered in California, the firm has 300 registered representatives, and 164 offices.
The US regulator noted that Crown Capital has violated its Rules 2040 and 2010. According to FINRA, from 2017 to 2021, Crown Capital paid $19.3 million in transaction-based compensation to unregistered entities. As a result of this violation, the regulator has imposed a $75,000 fine on the financial services provider.
The penalty also includes censure and a certification signed by a principal of the firm that all of Crown Capital’s commission payment arrangements comply with FINRA Rule 2040.