Chapin Davis has agreed to pay a fine of $45,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

On 17 days between August 2021 and May 2022, Chapin Davis conducted a securities business while failing to maintain the required minimum net capital and failed to notify the SEC or FINRA of those deficiencies.

The firm’s miscalculations also caused it to maintain inaccurate books and records and file 11 inaccurate Financial and Operational Combined Uniform Single (FOCUS) reports between April 2021 and December 2022.

Also, the firm failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with its net capital and recordkeeping obligations, as well as the Compliance Obligation of Regulation Best Interest (Reg BI) between June 30, 2020 and June 2023.

As a result of this conduct, Chapin Davis violated Sections 15(c)(3) and 17(a) of the Securities Exchange Act of 1934, Exchange Act Rules 15c3-1, 15l-1(a)(1), 17a-3, 17a-5, and 17a-11, and FINRA Rules 4110(b)(1), 4511, 3110, and 2010.

The firm has agreed to a censure on top of the $45,000 fine.

Chapin Davis has been a FINRA member since 1991. The firm, which is located in Baltimore, Maryland, has approximately 30 registered representatives in five branch offices and conducts a general securities business with retail customers.