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Cresap Inc. Comment On Regulatory Notice 25-06

Many in the small firm community believe that it is not the rules that are the problem, but how they are enforced. FINRA seems to devote too much time and too many resources examining well-intentioned firms that are devoid of customer complaints, and whose behavior is unlikely to cause customer harm. FINRA struggles to apply metrics to firms in determining how to deploy regulatory efforts. Here are some simple suggestions:

2018056490330 Joseph J. Steward CRD 3241331 AWC vr (2025-1749255600956).pdf

Between October 2019 and October 2021, Steward recommended to one retail customer a series of trades that were excessive, unsuitable, and not in the customer's best interest. As a result, Steward willfully violated the Best Interest Obligation under Rule 15/-l(a)(l) of the Securities Exchange Act of 1934 (Regulation BI or Reg BI) and violated FINRA Rules 2111 and 2010. For these violations, Steward is suspended for five months in all capacities and ordered to pay partial restitution of $6,000.