SWBC Investment Services, LLC has agreed to pay a fine of $25,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

During a 16-business-day period in February and March 2024, SWBC conducted a securities business while failing to maintain its minimum required net capital, in violation of Section 15(c)(3) of the Securities Exchange Act of 1934, Exchange Act Rule 15c3-1, and FINRA Rules 4110(b)(1) and 2010.

In addition, the firm failed to maintain books and records reflecting an accurate computation of its net capital from December 2023 to March 2024; filed with FINRA inaccurate Financial and Operational Combined Uniform Single (FOCUS) reports from December 2023 to February 2024; and failed to file net capital deficiency notices with the SEC and FINRA when its net capital fell below the firm’s minimum requirement.

As a result, SWBC violated Exchange Act § 17(a), Exchange Act Rules 17a-3, 17a-5, and 17a-11, and FINRA Rules 4511 and 2010.

The firm has agreed to a censure on top of the fine of $25,000.

SWBC has been a FINRA member since 2005. The firm is headquartered in San Antonio, Texas, and has five branches with approximately 30 registered representatives. SWBC primarily engages in proprietary and institutional trading of fixed income securities.