FINRA Fines Enclave Capital for Inaccurate Books and Net Capital Violations

The Financial Industry Regulatory Association has fined New York-based broker-dealer Enclave Capital $30,000 for its alleged failure to maintain accurate books and records and falling below the required $250,000 net capital minimum, according to a letter of acceptance, waiver, and consent.

Enclave, who has no formal disciplinary history, serves as an intermediating U.S. broker on behalf of foreign broker-dealer clients and employs approximately 20 registered representatives.

From May 2014 through September 2014, the broker-dealer allegedly failed to accrue certain business-related expenses, and as a result, maintained an inaccurate general ledger and submitted five months of inaccurate FOCUS reports to FINRA.

FINRA alleges that Enclave failed to maintain its required minimum net capital of $250,000 during various time periods between July 2014 and July 2015. The regulators said that Enclave had net capital deficiencies ranging from approximately ($13,000) to ($82,000) due to a loan repayment and their alleged failure to accrue certain business-related expenses.

Enclave violated 15(c) and 17(a) of the Exchange Act and FINRA Rules 4511 and 2010. Enclave signed the AWC letter without admitting or denying the findings.

Click here to visit The DI Wire directory page.