Bulletin # 3051 - Week Ending August 12, 2022

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications.  Any observations you may have are solicited.  Any comments should be in writing to Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800.  Written comments will be considered only if they are received within ten business days from the date of this bulletin.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Aldwych Securities LLC (CRD No. 167980)

On August 8, 2022, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-22-202223-S) with Aldwych Securities LLC, a Connecticut-registered broker-dealer located at 70 Seaview Avenue, Stamford, Connecticut 06902. The Stipulation and Agreement alleged that, from approximately August 2020 to April 2022, the firm employed two unregistered agents in violation of Section 36b-6(b) of the Connecticut Uniform Securities Act. The agents are no longer associated with the firm. In addition, the Stipulation and Agreement alleged that the firm violated Section 36b-31-9b of the Regulations under the Act by failing to timely notify the Commissioner of a net capital deficiency, since corrected. The Stipulation and Agreement acknowledged the firm’s representation that the net capital deficiency and related failure to report the same were attributable to a misinterpretation of Generally Accepted Accounting Principles by the firm’s prior third party Finance and Operations Principal and that the deficiency was remedied when the relevant service expense was paid in May 2020.

In resolution of the matter, the firm agreed to refrain from violative conduct and to pay a $5,000 fine to the department.