The Regulus Financial Group, a Michigan -based mediation company, was fined at a value of $ 20,000 by the Financial Industry Regulatory Authority (Finra).
The fine is the failure to reveal disciplinary history in the main customer documents, according to the acceptance, concession, and approval, published by the Finra.
Violations relate to the failure of Regulus to complete and update the CRS model properly, a summary of the customer relationship imposed by the US Securities and Stock Exchange (SEC) to enhance transparency with retailers.
From May 2021 to February 2024, Regulus was said to have not accurately revealed its legal or disciplinary date, nor in the control, in CRS files.
Finra stated that the company’s responses were incomplete and misleading, in the breach of Article 17 (A) (1) of the Securities Exchange Act 1934, Al-Qaeda 17A-14, and Finra Rule 2010.
While Finra said that the company has amended its files several times, it is said that it failed to respond “yes” to the question required regarding disciplinary history and customers did not direct the investor. Gov/CRS as required.
The issue arose from a 2023 routine examination. Regulus finally corrected the deposit in February 2024.
As part of the settlement, Regulus did not recognize and did not deny the results but agreed to blame and fine.