According to FINRA, Percival Financial Partners, Ltd. and its CEO Kenneth Percival Taylor Sr. were censured and fined for conducting a securities business while failing to maintain required minimum net capital and for related violations.

The Columbia, Maryland firm was fined $150,000 jointly and severally with Taylor, who also received an additional $15,000 fine and a two-year suspension from acting in any principal capacity with any FINRA member. Taylor must requalify by examination before returning to a principal role.

The findings revealed that the firm operated while net capital deficient due to misclassification of non-allowable assets and Taylor's equity withdrawals. As the firm's Financial and Operations Principal (FINOP), Taylor bore responsibility for the firm's financial compliance. The violations included failing to timely file required notices of net capital deficiencies with FINRA and the SEC.

The firm also filed inaccurate FOCUS reports and annual audit reports. Taylor inaccurately recorded his capital withdrawals as loans on the firm's general ledger, misrecorded a $100,000 transfer as additional paid-in capital, and failed to properly record a $450,000 advanced deposit as a firm liability. These errors led to inaccurate net capital calculations.

Perhaps most concerning, the firm has been suspended from FINRA membership since April 2023 for failing to file an accurate 2022 annual audit report. Despite being notified of this suspension on at least six occasions, Taylor permitted the firm to continue conducting securities business during the suspension period.

This case demonstrates the critical importance of accurate financial reporting in the securities industry. Net capital requirements exist to protect customers by ensuring firms have sufficient liquid assets. Investors should verify that their broker-dealer maintains current registration status through FINRA BrokerCheck before conducting business.

Taylor's suspension runs from May 19, 2025, through May 18, 2027.