Haywood Securities (USA) Inc has agreed to pay a fine of $275,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

Between January 2018 and April 2024, Haywood failed to accurately compute its required customer reserve, as required by Section 15(c)(3) of the Securities Exchange Act of 1934 and Exchange Act Rule 15c3-3, resulting in at least 36 hindsight deficiencies.

The firm’s inaccurate customer reserve computations also caused the firm to maintain inaccurate books and records. As a result, Haywood violated Sections 15(c)(3) and 17(a) of the Exchange Act, Exchange Act Rules 15c3-3, l7a-3, and l7a-4, and FINRA Rules 4511 and 2010.

During this same period, Haywood failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with the customer reserve requirements of Exchange Act§ 15(c)(3) and Exchange Act Rule l 5c3-3. As a result, Haywood violated FINRA Rules 3110 and 2010.

Haywood has agreed to a censure in addition to the fine of $275,000.

Haywood has been a FINRA member since 1997. Headquartered in Vancouver, British Columbia, Haywood employs 108 registered representatives in three branch offices. Haywood conducts a general securities business.