FINRA Fines 5 Firms for Reg BI, Form CRS Violations

Highlander Capital was censured and fined $5,000 for falsely representing on the firm’s Form CRS that neither it nor its associated persons had any legal or disciplinary history. “In fact, both the firm and two of its registered representatives had prior legal or disciplinary history,” the order states.

American Wealth Management, meanwhile, was censured and fined $35,000 for omitting required information from the firm’s Form CRS. Most significantly, from July 23, 2020, to March 31, 2022, the firm failed to disclose on its Form CRS that it and six of its financial professionals had legal or disciplinary history, the order states.

DMK Advisor Group Inc. was censured and fined $35,000 for failing to establish, maintain and enforce a supervisory system, including written supervisory procedures, which required the firm to timely prepare, file and deliver its Form CRS to retail customers by July 30, 2020.

DMK also failed to deliver its Form CRS to certain of its customers until October 2022.

The broker-dealer DMK also failed to establish, maintain and enforce a supervisory system, including WSPs, reasonably designed to achieve compliance Reg BI and Form CRS, according to FINRA.