CoreCap Investments, LLC has agreed to pay a $60,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA).。

During the period from April 26, 2021 to November 3, 2021, CoreCap operated more offices than its membership agreement allowed, did not submit continuing membership applications for significant changes in business operations, and did not obtain FINRA approval, in violation of FINRA rules 1017 (a) and 2010。

In 2019, FINRA informed CoreCap that the number of its offices exceeded the number specified in the membership agreement, in violation of NASD 1017..3 Rules。In response, CoreCap submitted a continuing membership application to FINRA requesting approval to expand the business from 20 to 100 offices.。

CoreCap subsequently amended its application to request approval to expand its operations to 55 offices.。On May 8, 2020, CoreCap signed a membership agreement that allows it to "operate 55 [offices] (registered and unregistered), including the head office."。CoreCap subsequently signed another membership agreement on July 29, 2020, which also allows it to operate 55 offices.。

Despite the company's statements in its membership agreement, as of April 26, 2021, CoreCap had operated 82 offices, expanding its permitted business operations by 27 offices and 11 more than the number required by Safe Harbor.。

Although CoreCap acknowledged that its operations had exceeded its membership agreement and safe harbor provisions, it did not reduce the number of offices to the number allowed until one year after the violation was discovered, and about five months after FINRA was notified.。