Is Spartan Capital Asset Management Regulated Enough?

You may have heard people endorsing Spartan Capital Asset Management in emails, forums, chat groups, and social media; it has some fantastic investing options. But is that broker truly reliable and safe? 

Since Spartan Capital Asset Management is not under the control of a financial authority with high requirements, it is not a reliable broker. We would not open an account with them for ourselves. If you wish to remain safe, only register with brokers under close supervision by a top-notch and strict regulator. Every one of the more than one hundred brokers on the BrokerChoice website satisfies these requirements.

Can I take Spartan Capital Securities to court?

YES, you can sue Spartan Capital Securities. Still, you signed away your right to suit in court. You decided to handle your conflict in a FINRA arbitration case if you lost money caused by Spartan Capital Securities and employee misbehavior. Having over forty years of personal expertise in FINRA arbitration procedures, attorney Robert Wayne Pearce is quite familiar with how you might sue Spartan Capital Securities in FINRA arbitration and WIN that arbitration.

Does Spartan Capital Asset Management Lack Top-Tier Regulation?

Avoiding completely unregulated brokers is the first guideline for maintaining the safety of your investments. The fact that a broker is under regulation does not ensure the security of your money. The entity controlling the broker has a big effect.

Regulators fall into three groups, according to our broking professionals:

1. Top-tier
2. Mid-tier
3. Low-tier

Top-tier authorities resemble the fiercest sports officials. To ensure brokers act ethically and refrain from dubious behavior, they impose the toughest guidelines. One of these top-tier authorities supervising a broker indicates they are following the best standards. Fair pricing, open trade execution, and a well-regulated trading environment are so expected.

The following table features some of the most respected top-tier financial authorities compiled by our analysts.

What is Securities Spartan Capital?

Registered broker-dealer Spartan Capital Securities (CRD# 146251) is. Serving individual investors and financial advisers, it functions as a full-service independent broker-dealer offering various financial products and services. As a registered broker-dealer, Spartan Capital Securities is governed and under rules by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Complying with industry standards and regulations helps to guarantee the preservation of consumer interests. Either its brokers or the company itself failing to follow industry norms could lead to disciplinary measures, fines, or other penalties applied by regulatory authorities.

Spartan Capital Securities Deals with Many Different Regulatory Issues

The rapid expansion of Spartan Capital Securities has not been without repercussions. About six state and self-regulatory body disclosure events—that is, official and final proceedings started by a regulatory authority—e.g., a state or federal securities agency such as the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA)—for a violation(s) of investment-related rules or regulations. Furthermore, the company did not register hundreds of consumer complaints against Spartan Capital Securities for misbehavior by its securities sales and investment advising personnel on its Central Depository Record.

Over many years, we have documented and written about these customer complaints and regulatory issues. Spartan Capital Securities is a recurrent offender; more than six FINRA-documented disciplinary cases mention the company with one type of supervising lapse or another.

Why Does Spartan Capital Securities Get So Many Customer Compliments And Regulatory Issues?

Lax supervisory processes and procedures are well-known for independent broker-dealers. Unlike a full-service branch office with an on-site manager, compliance officer, and operation staff, the business plan of these franchise-type companies is to create multiple offices nationally for consistent development of fixed monthly revenues without the expenses associated with each. Generally speaking, the registered representatives of these independent broker-dealers run separately established companies. They are not controlled like full-service broking company reps since they are not broker-dealer employees. Usually, leaving the protection of investors’ rights and interests second, the registered representatives manage their structure and expenses to maximize profits.

Usually, independent broker-dealer operations have other independent contractors run Offices of Supervisory Jurisdiction (OSJs) to monitor registered representatives from geographically remote offices and subsequently report back to the central franchisor’s compliance office at national headquarters. Often running their own broking, insurance, and other businesses, the OSJ supervisors are not franchisees. They are not devoted full-time managers of the smaller branch offices. Consequently, OSJ administrators cannot and do not oversee the daily activities of the registered representatives of various independent broker-dealers.

Generally, new accounts are created at these independent broking firms, and securities transactions, business documents, cash or securities receipts and deliveries, communications, and business operations unrelated to the securities broking activity are not immediately reviewed. Investors who have moved their accounts to the smaller independent broker-dealer are left open to selling securities not checked or approved by anybody else but the sales agent under insufficient supervision.

There might be no one on-site to find customer signature forgeries on papers or correct information about a client’s investment goals and financial situation to record the fit of a given investment advice. Usually, there is no daily examination of sales data and customer correspondence to guard against false claims and deceptive remarks directed toward investors. There is only one compliance audit visit at many of these offices annually—not unusual.

The North American Securities Administrators Association (NASAA), which has recorded more cases of sales abuse and hence investor losses at these companies than the conventional broking firms with branch offices with on-site managers and compliance personnel, finds these independent broking business operations alarming.

Did Advisor Misconduct of Spartan Capital Securities Cause Investment Losses?

You are entitled to be reimbursed by the relevant parties if a financial advisor’s misbehavior results in significant value loss to your investment accounts. Like any company, Spartan Capital Securities is accountable for the financial advice acts and omissions. It also owes an independent obligation to monitor its investment advisers and stockbrokers. These claims can be complicated; thus, your success depends on obtaining the help of a credible attorney who has recovered investment losses for investors. Many clients find their concerns denied when they approach Spartan Capital Securities without counsel with an attorney.