Creand Securities has agreed to pay a fine of $115,000 as part of a settlement with the Financial Industry Regulatory Authority (FINRA) in the period from October 2019 to February 2020. Creand failed five times to accurately calculate its required customer reserve funds, resulting in four subsequent deficiencies ranging from approximately $1.3 million to $13.4 million, totaling approximately $27.8 million.

Due to the company's failure to accurately calculate its customer reserve fund obligations, it submitted five inaccurate Financial and Operational Combined Uniform Single (FOCUS) reports and maintained inaccurate customer reserve fund ledgers and records. As a result of the aforementioned reasons, Creand violated Section 15(c) and 17(a) of the Securities Exchange Act of 1934, Sections 15c3-3, 17a-3, 17a-4, and 17a-5 of the Exchange Act, as well as FINRA Rules 4511 and 2010.

Since October 2019, Creand has also failed to establish and maintain a supervisory system, including Written Supervisory Procedures (WSP), to reasonably achieve compliance with the rules regarding customer reserve fund requirements under the Exchange Act, in violation of FINRA Rules 3110 and 2010.

In addition to the fine, the company has also agreed to accept censure. Creand Securities became a FINRA member in November 1995 and is a self-clearing broker-dealer, primarily engaging in retail trading of stocks and corporate bonds for foreign clients.