USCA Securities LLC has reached a settlement involving a penalty of $75,000 with the Financial Industry Regulatory Authority (FINRA). The financial firm has been cited for several breaches of regulatory requirements.
Between January and September of 2022, USCA operated for a total of 35 days without adhering to the necessary minimum net capital regulations, a violation of Section 15(c)(3) of the Securities Exchange Act of 1934, alongside Exchange Act Rule 15c3-1 and various FINRA rules. These infractions meant that the firm was not maintaining the required capital levels, which are essential for the stability and integrity of its operations.
Furthermore, from December 2021 through July 2022, USCA also struggled to maintain accurate financial records, resulting in the submission of eight incorrect Financial Operational Combined Uniform Single (FOCUS) reports to FINRA. This failure reflected violations of Exchange Act § 17(a) and the accompanying Exchange Act Rules 17a-3 and 17a-5, as well as FINRA Rules 4511 and 2010.
Additionally, for a significant period from January 2021 to December 2022, the firm was non-compliant with FINRA Rules 3110 and 2010 due to insufficient establishment and maintenance of a supervisory system. This system was supposed to include written supervisory procedures (WSPs) aimed at ensuring adherence to net capital requirements, highlighting a lack of oversight and management controls.
As a result of these violations, the firm received a censure from FINRA alongside the monetary fine of $75,000. USCA Securities has been a member of FINRA since the year 2000 and operates out of Houston, Texas. The firm has a network of 95 registered representatives across four branch offices and is engaged in a general securities business.
Such penalties are a part of FINRA’s ongoing efforts to uphold the integrity and reliability of the securities industry by ensuring that firms comply with necessary financial regulations and maintain adequate capital.