FINRA fines EarlyBirdCapital for reporting deficiencies
EarlyBirdCapital, Inc. has agreed to pay a fine of $150,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From May 2017 to April 2021, EarlyBird filed inaccurate and untimely Financial and Operational Combined Uniform Single (FOCUS) reports and maintained inaccurate books and records regarding its aggregate indebtedness and net capital, in violation of Section 17(a) of the Securities Exchange Act of 1934, Exchange Act Rules 17a-3 and 17a-5, and FINRA Rules 4511 and 2010.
Also, from May 2017 to September 2022, EarlyBird failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with the Exchange Act rules relating to net capital, FOCUS reports, and required books and records, in violation of FINRA Rules 3110 and 2010.
EarlyBirdCapital, Inc. (EarlyBird), a FINRA member since October 1992, is headquartered in Melville, New York, and engages in investment banking and securities trading. EarlyBird employs approximately 20 registered representatives in four branch offices, including its Melville headquarters.
In addition to the $150,000 fine, the firm has agreed to a censure.