FINRA fines Seven Points Capital over lack of necessary qualification of prop traders
From April 2014 to February 2016, Seven Points permitted 13 proprietary traders to engage in equity trading when these associated persons were not properly qualified and did not maintain the appropriate registrations with FINRA.
The United States Financial Industry Regulatory Authority (FINRA) has earlier today accepted a Letter of Acceptance, Waiver and Consent (AWC) submitted by Seven Points Capital LLC.
Seven Points has been a member of FINRA since 2007. As of February 15, 2019, the firm employed 39 registered individuals and had four branch offices. Its main office is located in New York. Seven Points is primarily involved in trading and execution off securities for its own account.
On various dates during the period between April 22, 2014 and February 27, 2016 (the “Relevant Period”), Seven Points permitted 13 proprietary traders to engage in equity trading when these associated persons were not properly qualified and did not maintain the appropriate registrations with FINRA.
Five of these associated persons engaged in trading when they had not passed the Series 7 examination and registered as General Securities Representative. The other eight were registered as General Securities Representative but did not timely complete the Series 55 examination and register as an Equity Trader, or, as applicable, complete the Series 57 examination and register as a Securities Trader. As a result of this, Seven Points violated NASD Membership and Registration Rules and FINRA Rules.
Under the AWC, the firm consents to the imposition of the following sanctions:
- A censure, and
- a fine in the amount of $20,000.
The Firm agrees to pay the monetary sanction upon notice that this AWC has been accepted and that such payment is due and payable.
