Arive Capital Markets has agreed to pay a $300,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From August 2016 to June 2020, the company failed to establish, maintain, and enforce a supervisory system, including reasonably designed Written Supervisory Procedures (WSPs), to achieve compliance with FINRA Rule 2111 concerning excessive trading.

As a result, Arive failed to reasonably identify or address red flags of excessive trading in 12 customer accounts, resulting in customers paying nearly $640,000 in commissions, costs, and margin interest. Through this conduct, Arive violated FINRA Rules 3110 and 2010.

From June 2018 to February 2019, the company failed to establish, maintain, and enforce a supervisory system, including WSPs, to reasonably design for compliance with the requirements of FINRA Rule 3230 regarding telephone solicitation.

During the period from June 2018 to February 2019, Arive frequently violated telephone solicitation rules. Representatives made over 60,000 outbound calls to more than 20,000 telephone numbers listed on the national do-not-call registry. In at least 27 instances during the relevant period, branch office representatives made outbound calls to numbers on the company's do-not-call list.

In at least 32 instances, representatives made outbound calls before 8 a.m. local time or after 9 p.m. local time. Through this conduct, Arive violated FINRA Rules 3230, 3110, and 2010. In addition to the $300,000 fine, the company has agreed to accept censure and pay $594,928.74 in restitution, plus interest.