Boral Capital, a New York-based brokerage firm, has been fined $125,000 and censured by the Financial Industry Regulatory Authority (FINRA) for a series of regulatory breaches that occurred between July 2020 and May 2024.
D. Boral Capital Fined $125,000 by FINRA
According to a Letter of Acceptance, Waiver, and Consent published by FINRA, the firm conducted securities business on 96 days without maintaining the minimum required net capital, in violation of the Securities Exchange Act and multiple FINRA rules.
The deficiencies are said to have stemmed from improperly structured underwriting agreements, unauthorised capital withdrawals by firm principals, and accounting misclassifications.
The firm was also cited for failing to maintain adequate written supervisory procedures to ensure compliance with net capital rules.
Despite participating in over 100 firm commitment underwritings during the period, FINRA said D. Boral Capital lacked sufficient internal guidance on calculating net capital and managing risk.
In addition, between April 2022 and November 2023, the regulator stated that the firm failed to file or submit, in a timely manner, the required documentation related to its participation in public offerings.
This reportedly included registration statements, offering memoranda, and notices of effectiveness, breaching FINRA Rule 5110.
The violations were identified through FINRA’s Risk Monitoring programme. Although D. Boral Capital has neither admitted nor denied the findings, it has accepted the sanctions and agreed to pay the fine.
The firm, which has been a FINRA member since 2000, operates with 35 registered representatives across two offices and serves primarily institutional clients.
