According to FINRA, ACP Securities, LLC was censured and fined $20,000 for failing to disclose on its Form CRS that one of its associated persons had disciplinary history.

Form CRS requires broker-dealers to disclose whether they or their financial professionals have legal or disciplinary history. This information is critical for retail investors evaluating whether to do business with a firm.

The associated person's disciplinary history included violations related to using non-firm-approved communications platforms to communicate with customers about firm business. This information was readily available to the firm through FINRA's Central Registration Depository (CRD) and BrokerCheck.

Despite having access to this information, the firm failed to update its Form CRS to disclose the associated person's disciplinary history for approximately two and a half years after the individual joined the firm. During this entire period, retail investors were not informed of this relevant disciplinary history.

This case highlights the importance of firms maintaining accurate and current Form CRS disclosures. When representatives with disciplinary history join a firm, the firm's Form CRS must be updated promptly to reflect this information.

Investors are encouraged to use FINRA's BrokerCheck tool (brokercheck.finra.org) to research their financial professionals independently. BrokerCheck provides detailed information about brokers' qualifications, employment history, and any regulatory actions, customer disputes, or criminal matters. This independent research can supplement the information firms are required to provide.