Cantor Fitzgerald has been fined $73,000 by the Financial Industry Regulatory Authority (FINRA) for multiple failures related to regulatory notifications in connection with securities distributions, including breaches of anti-manipulation rules under Regulation M.
FINRA Fines Cantor Fitzgerald for Regulation Notification Failures
Between 2017 and 2022, the regulator claims Cantor submitted dozens of untimely or inaccurate filings to FINRA regarding its intent to engage in syndicate covering transactions and trading activities.
According to FINRA, the firm violated several rules, including Regulation M Rule 104 and FINRA Rules 2010 and 5190, by failing to notify regulators in a timely manner and by filing incomplete information during distributions where it acted as manager.
In one instance, a required notice was filed more than 1,000 days late. In total, Cantor submitted 35 late restricted period notifications, 26 of which were inaccurate, as well as 11 late and three inaccurate trading notifications.
FINRA is also said to have found that Cantor failed to maintain a supervisory system to ensure compliance with notification obligations. The firm did not have written supervisory procedures to check that filings were accurate or timely and did not review submissions after filing.
The violations were identified through FINRA surveillance and the firm’s own disclosures.
The regulator said Cantor has since updated its supervisory processes. The $73,000 sanction was settled alongside similar actions from Nasdaq and NYSE Arca for a combined total of $225,000.
The firm neither admitted nor denied the findings but accepted the fine as part of a settlement with FINRA.
