Cape Securities Inc has agreed to pay restitution of $145,072 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From July 2020 to March 2023, Cape Securities failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 (Reg BI).

Cape Securities also failed to reasonably supervise its registered representatives’ recommendations to purchase GWG L Bonds and non-traditional exchange-traded products (NT-ETPs) for compliance with Reg BI.

As a result, Cape Securities willfully violated Reg BI and violated FINRA Rules 3110 and 2010.

In addition, from May 2023 to March 2025, the firm failed to timely respond to eight requests for information made pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010.

For these violations, the firm was censured and ordered to pay partial restitution of $145,072.62, plus interest.

Cape Securities has been a FINRA member since 1976 and is headquartered in McDonough, Georgia. On March 19, 2026, the firm filed a Uniform Request for Broker Dealer Withdrawal (Form BDW) requesting to terminate its registration with FINRA.

Prior to filing the Form BDW, the firm had approximately 20 registered representatives and eight branch locations, and conducted a general securities business offering investment products and services to retail customers. FINRA retains jurisdiction over the firm pursuant to Article IV, Section 6 of FINRA’s By-Laws.

Pursuant to the General Principles Applicable to all Sanction Determinations contained in FINRA’s Sanction Guidelines, FINRA did not impose a fine after it considered, among other things, Respondent’s revenues and financial resources, Respondent’s Form BDW filing requesting to terminate its registration with FINRA, and Respondent’s agreement to pay restitution.