Altruist Financial LLC has agreed to pay a fine of $150,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From March 2020 to April 2023, Altruist failed to reasonably supervise its fully paid securities lending business. Altruist participated in a fully paid securities lending program offered by its clearing firm in which over 30,000 of its customers were enrolled.

However, Altruist had no system to supervise that business, including, for example, the customer enrollment process.

In addition, Altruist provided a lending agreement to its participating customers that inaccurately stated that customers would receive loan fees for their borrowed shares and that Altruist would reduce management fees for participating customers.

Therefore, Altruist violated FINRA Rules 3110, 2210(d)(1)(B), and 2010.

The firm has agreed to a censure, a fine of $150,000, and restitution of $142,851.22, plus interest.

Altruist Financial LLC became a FINRA member in 2019. Until April 2023, the firm operated as an introducing broker-dealer, facilitating securities transactions in equities, ETFs, and mutual funds. Since April 2023, Altruist has been self-clearing. Headquartered in Dallas, Texas, the firm has thirteen branch offices and approximately 100 registered representatives.