Dalmore Group Fined $375,000 by FINRA for Multiple Violations

Dalmore Group LLC has reached a settlement with the Financial Industry Regulatory Authority (FINRA), agreeing to pay a $375,000 fine for various compliance failures from January 2019 to December 2022. The firm was found in violation of several regulations, including the failure to maintain a supervisory system to meet suitability and best interest obligations under Regulation Best Interest (Reg BI).

Key issues highlighted include the absence of written supervisory procedures, inadequate measures to prevent misuse of material non-public information, and failure to fingerprint non-registered associated persons as required by law. Furthermore, Dalmore neglected to timely report outside business activities of ten registered representatives and violated content standards in retail communications across multiple platforms.

Additionally, the firm failed to meet contingency requirements for private offerings, releasing investor funds prematurely. From August 2022 to January 2023, Dalmore provided incomplete and inaccurate responses to FINRA's document requests. Along with the financial penalty, the firm has also agreed to a censure, signaling a need for enhanced compliance measures moving forward.