Crown Capital Securities (hereinafter referred to as "Crown Capital") has agreed to pay a fine of $50,000 as part of its settlement with the Financial Industry Regulatory Authority (FINRA).

During the period from January 2014 to December 2019, Crown Capital failed to reasonably supervise transactions conducted by its registered representatives directly with representatives of product suppliers (i.e., direct business transactions).

Crown Capital did not take reasonable measures to ensure that these direct business transactions appeared in the company's daily trading records, resulting in the company failing to review approximately 9,000 transactions through exception reports, thereby failing to identify potential sales practice violations.

As a result, Crown Capital violated NASD Rule 3010 and FINRA Rules 3110 and 2010. In addition to the $50,000 fine, the company also agreed to accept censure and pay $116,390.58 in restitution and interest.

Crown Capital has been a member of FINRA since 1972. The company provides retail brokerage and wealth management services to individuals and is headquartered in Orange, California. During the relevant period, the company had approximately 150 branch offices and over 300 registered representatives.