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

From June 2020 through August 2021, Thurston Springer 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 (Regulation Best Interest or Reg BI).

Separately, Thurston Springer has failed, since June 2020, to establish and maintain a supervisory system reasonably designed to achieve compliance with its obligations to file and deliver customer relationship summaries (Form CRS). As a result, Thurston Springer violated Reg BI and FINRA Rules 3110 and 2010.

From January 2020 to December 2021, Thurston Springer failed to inspect its only office of supervisory jurisdiction and eleven branch locations that were due for inspections. Therefore, the firm violated FINRA Rules 3110 and 2010.

From January 2019 to January 2023, Thurston Springer failed to conduct reasonable supervisory control testing. The firm’s designated principal failed to provide annual reports to senior management detailing the systems of supervisory controls, the summary of the test results, any significant issues identified, and any modifications to the procedures implemented in response to the test results. Moreover, for all but one year, Thurston Springer’s CEO failed to make the required certification. For the remaining year, the CEO failed to include any of the language required by Rule 3130(c).

Therefore, Thurston Springer violated FINRA Rules 3120, 3130, and 2010.

As a result of these violations, Thurston Springer has agreed to a censure, a $150,000 fine, and an undertaking.

Thurston Springer is a full-service broker-dealer headquartered in Indianapolis, Indiana. Thurston Springer has been a FINRA member since January 6, 1981, and has approximately 118 registered representatives in 34 branch offices.