Pinnacle Investments, LLC has agreed to pay a fine of $65,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From June 30, 2020, through September 2024, Pinnacle violated Rule 15l-1 of the Securities Exchange Act of 1934 (Reg BI), as well as FINRA Rules 3110 and 2010, by failing to establish, maintain, and enforce a reasonable supervisory system, including written supervisory procedures (WSPs), concerning recommendations of inverse, or leveraged exchange traded funds or notes (NT-ETPs).

Also, from May 2021, through June 2024, Pinnacle violated FINRA Rules 3110 and 2010 by failing to establish, maintain, and enforce a supervisory system reasonably designed to monitor for discretionary and/or unauthorized trading in customer accounts.

In addition, from 2016 to 2022, the firm failed to conduct timely branch inspections, in violation of FINRA Rules 3110 and 2010.

For these three supervisory violations, Pinnacle is censured, fined $65,000, ordered to pay restitution of $53,847.99 plus interest, and has agreed to an undertaking.

Pinnacle has been a FINRA member since 2007. The firm, which is headquartered in East Syracuse, New York, has 20 branch offices and approximately 70 registered representatives.