Is Spartan Capital Asset Management a Safe and legit Broker or A Scam?

Spartan Capital Asset Management might offer attractive investment opportunities. People might have suggested it in emails, forums, chats, or social media. Spartan Capital Asset Management has grown fast, but it has faced problems. Many customers complained about it. They say its salespeople and advisors did the wrong things, but the company didn’t mention this in its records. This review will help you know if Spartan Capital Asset Management is a safe and legal broker or a scam.

What is Spartan Capital Asset Management?

Spartan Capital Asset Management isn’t a trusted broker because a strict financial authority doesn’t regulate it. The company says it’s a full-service independent broker-dealer, offering various financial products and services to individual investors and financial advisors.

Since it’s not registered as a broker-dealer, Spartan Capital Management claims to follow rules set by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). These rules aim to protect clients’ interests. If the firm or its brokers don’t meet industry standards, they could face disciplinary actions, fines, or other penalties from regulatory authorities.

Is Spartan Capital Asset Management Safe or a Scam?

Spartan Capital Asset Management got in trouble many times. They were warned and fined millions of dollars because they didn’t properly supervise their financial advisors, making them seem like scams. They’ve been dealing with regulatory issues for years. If Spartan Capital Asset Management or its employees caused you to lose money, you can sue Spartan Capital Asset Management.

On March 28, 2023, a hearing panel decided that the firm broke the rules and fined it $600,000. They also have to hire someone independent to check their supervision methods and fix the paperwork for their staff to show what happened with customer complaints and disputes, costing them $17,768.31.

They got in trouble because they didn’t update their paperwork on time to say what was happening with customer complaints and financial issues. They also didn’t tell anyone about customer complaints involving their top staff on time.

On April 19, 2023, they disagreed with the decision and asked for it to be reviewed again. The punishment is still waiting to be decided.

Understanding Spartan Capital’s Regulatory Issues and Customer Complaints

Spartan Capital Asset Management faces many problems with rules and customer complaints because of how they operate. They belong to a group called independent broker-dealers. These kinds of companies are known for not watching over their people and processes closely. 

They expand by opening many offices nationwide to make money regularly without spending too much on managing each office. Unlike big brokerage firms with managers, compliance officers, and staff in each branch, the agents working for independent broker-dealers are like separate small businesses. They’re not company employees, so they don’t have the same rules to follow.

These agents control their costs and structure to make more profit. Sadly, they often don’t prioritize protecting the rights and interests of the investors they work with.

These independent broker-dealers usually oversee their agents by having other independent contractors manage certain offices called Offices of Supervisory Jurisdiction (OSJs). These managers keep an eye on the agents but aren’t dedicated to watching them full-time. They also have their businesses to run, so they might not give enough attention to the agents’ activities.

Because of this, there’s often insufficient checking on things like new accounts, transactions, records, or customer communications in these independent brokerage firms. This lack of supervision puts investors who have their accounts with these firms at risk. They might buy securities that haven’t been checked or approved properly, or they could be given false information about investments. Sometimes, there’s hardly any oversight to catch mistakes or misleading statements.

These independent brokerage firms worry groups like the North American Securities Administrators Association (NASAA). They’ve found more misconduct cases and investors losing money in these firms compared to traditional brokerage firms with proper offices and oversight.

In short, Spartan Capital Asset Management faces regulatory issues and customer complaints because its operations don’t provide enough supervision and protection for investors.

Final Thoughts

So, Spartan Capital Asset Management is a scam, and you should stay away from brokers that are not regulated. But being regulated doesn’t always mean your money is safe. Who regulates the broker is important. That’s why, at Topforex, we’re here for you before you fall into such scams. We only suggest regulated brokers. Our advice is simple: go for brokers registered with at least one top-tier regulator. We also keep our database up-to-date by adding information about fraudulent brokers reported by users after we check them thoroughly.