Regulus Financial Group, a Michigan-based brokerage firm, has been fined $20,000 by the Financial Industry Regulatory Authority (FINRA).
Regulus Financial Group Fined by FINRA Over Form CRS Failures
The fine is for failing to disclose disciplinary history in key customer documentation, according to a Letter of Acceptance, Waiver, and Consent, published by FINRA.
The violations relate to Regulus’s failure to properly complete and update its Form CRS, a customer relationship summary mandated by the U.S. Securities and Exchange Commission (SEC) to promote transparency with retail investors.
From May 2021 to February 2024, Regulus reportedly did not accurately disclose its own legal or disciplinary history, nor that of a control affiliate, in its Form CRS filings.
FINRA stated that the firm’s responses were incomplete and misleading, in breach of Section 17(a)(1) of the Securities Exchange Act of 1934, Rule 17a-14, and FINRA Rule 2010.
While FINRA said the firm amended its filings several times, it is said to have failed to respond “Yes” to the required question concerning disciplinary history and did not direct clients to Investor.gov/CRS as required.
The matter originated from a 2023 routine examination. Regulus eventually corrected the filing in February 2024.
As part of the settlement, Regulus neither admitted nor denied the findings but agreed to a censure and fine.
