The GMS Group, LLC has agreed to pay a fine of $35,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From June 30, 2020, until October 2023, GMS Group failed to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 (Reg BI), in violation of Reg BI, MSRB Rule G-27, and FINRA Rules 3110 and 2010.

During the same period, GMS Group also failed to establish and maintain written supervisory procedures (WSPs) reasonably designed to achieve compliance with Exchange Act Rule 17a-14 obligations regarding Form CRS, in violation of MSRB Rule G-27 and FINRA Rules 3110 and 2010.

On top of the $35,000 fine, GMS Group has agreed to a censure.

GMS Group has been a FINRA member and a Municipal Securities Rulemaking Board (MSRB) registrant since 1979. GMS Group is headquartered in East Hanover, New Jersey. It has 65 registered representatives and eight branch offices. It is a full-service broker-dealer and primarily conducts a municipal securities business.