FINRA Suspends Sandlapper Securities for Missing Audit Deadline
Sandlapper Securities, a full-service independent broker-dealer and dealer manager of investment products, has been suspended by FINRA for failing to file its December 2017 annual audit report.
Sandlapper Securities, a full-service independent broker-dealer and dealer manager of investment products, has been suspended by the Financial Investment Regulatory Authority for failing to file its December 2017 annual audit report.
According to a statement on its Brokercheck report, Sandlapper says that it engaged an unnamed CPA firm late last year which specialized in Public Company Accounting Oversight Board audits for broker-dealers. In January 2018, the company began sending its requested 2017 financials to the auditors with the understanding that it would complete the audit by the due date of March 2nd.
Sandlapper claims that the auditors missed the deadline and subsequent 10-day extension and failed to communicate that they had not received the requested financials, which Sandlapper claims they sent prior to the original deadline. After finally locating the financial documents, the auditor purportedly made numerous additional requests, one of which exceeded 5,000 individual pieces of data.
“While aware of a drop-dead deadline of April 25th needed to be met to avoid a suspension, the auditors continued to work with no sense of urgency and subsequently missed that deadline, said Sandlapper. “As such the auditor, through their negligence, has harmed our firm directly.”
The auditor resigned on April 26th, the day after Sandlapper was placed on technical suspension. The company has since engaged a new auditor and expects to complete and file its audit “shortly.”
According to FINRA Rule 9552, if Sandlapper fails to request termination of the suspension within three months, it will be automatically expelled.
