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Navaid Monetary Companies consented to a censure and a $35,000 high-quality to settle allegations by the Monetary Business Regulatory Authority that the agency violated municipal securities guidelines referring to transaction reporting and supervision.
Haddonfield, N.J.-based Navaid, a FINRA member and a Municipal Securities Rulemaking Board registrant since 1997, accepted FINRA’s findings with out admitting or denying them, in keeping with a settlement doc dated Dec. 3.
FINRA discovered that from Might 29, 2018 via July 23, 2024, the agency failed to incorporate the non-transaction-based compensation indicator when reporting 12,066 municipal securities transactions to the MSRB’s Actual-time Transaction Reporting System. That put the agency in violation of MSRB Rule G-14, which units out transaction reporting necessities for municipal securities.
“Correct and well timed reporting to the RTRS ensures right dissemination of transaction data, will increase worth transparency, and enhances regulatory oversight of municipal securities buying and selling,” FINRA mentioned, including that “Rule G-14 RTRS Procedures (b)(iv) requires companies to report the relevant ‘particular situation indicators.'”
Amongst these particular situation indicators is the NTBC indicator, which is required for buyer transactions that do not embrace a mark-up, mark-down or fee, FINRA mentioned.
“From Might 29, 2018 via July 23, 2024, Navaid reported to the RTRS 12,066 municipal securities transactions with clients that didn’t embrace a mark-up, mark-down, or fee,” FINRA mentioned in its findings, including that Navaid failed to incorporate the NTBC indicator on any of these stories as a result of the agency wasn’t conscious of the requirement to incorporate the indicator.
“Due to this fact, Navaid violated MSRB Rule G-14(b),” FINRA mentioned.
As well as, from at the very least Might 29, 2018 to June 30, 2025, Navaid “failed to ascertain and keep a supervisory system, together with written supervisory procedures, that was moderately designed to make sure compliance with MSRB Rule G-14, in violation of MSRB Rule G-27,” the settlement doc mentioned.
“MSRB Rule G-27 requires brokers, sellers and municipal securities sellers to ascertain and keep a supervisory system, together with written procedures, to oversee the conduct of their municipal securities actions to make sure compliance with MSRB guidelines and relevant provisions of the Securities Trade Act of 1934 and Trade Act guidelines,” the doc mentioned.
Navaid didn’t reply to requests for remark.
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