Regulatory Failures Lead to $150,000 Fine for Thurston Springer

Thurston Springer Financial, a full-service broker-dealer based in Indianapolis, has agreed to pay a $150,000 fine following a regulatory settlement with the Financial Industry Regulatory Authority (FINRA). The penalties stem from the firm's failure to comply with various supervisory obligations under federal securities laws and FINRA rules between 2019 and 2023.

Key Violations

Between June 2020 and August 2021, the firm failed to establish and enforce policies designed to ensure compliance with Regulation Best Interest (Reg BI), a rule intended to enhance investor protection. In addition, since June 2020, Thurston Springer failed to implement adequate procedures to manage and deliver customer relationship summaries (Form CRS), in violation of Reg BI and FINRA Rules 3110 and 2010.

Supervisory Oversight Lapses

The firm also failed to inspect its only Office of Supervisory Jurisdiction and eleven branch offices due for inspection from January 2020 to December 2021. Further, from January 2019 through January 2023, Thurston Springer did not conduct required annual supervisory control testing and reporting. Reports to senior management were not submitted, and for several years, the CEO failed to complete or properly certify the firms supervisory procedures, breaching FINRA Rules 3120, 3130, and 2010.

Sanctions and Implications

As a result of these violations, FINRA imposed a censure and a $150,000 fine. The settlement also includes an undertaking by Thurston Springer to implement remedial actions. The case underscores the regulatory emphasis on proactive compliance and the enforcement of supervisory responsibilities across branch operations.