Spartan Capital Asset Management Review

According to Spartan Capital Management, they give advice to companies and help them invest in different areas. The company started in 2018. They work with stockbroker groups, advisors, consultants, PR, and IR specialists to help our clients get the best results. You might have heard people talking about it as if it’s overhyped. Spartan Capital Asset Management has grown quickly, but it has several problems. Many people complained about Spartan Capital Management, but the company didn’t mention this in its records. In this review, we will help you determine whether Spartan Capital Asset Management is safe or a scam.

What is Spartan Capital Asset Management?

Spartan Capital Securities, LLC is a financial company that helps rich people and big organizations manage their money. They know a lot about the market, plan how to handle risks, and make smart investment choices. If you go to the company’s website, you can see that they say people trust them because they’re good at giving financial advice.

Their idea is simple: They learn what their clients want to achieve with their money and then do what’s needed. They say their experienced investment experts give special attention to each client, making a plan that fits their goals. But how legitimate are all of these? Let’s discuss this further before you make an informed decision.

Is Spartan Capital Asset Management Safe or a Scam?

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. It offers different financial products and services to people who invest 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, regulatory authorities could take disciplinary actions against them, fine them, or impose other penalties.

Spartan Capital Management messed up many times. They didn’t keep a close eye on their financial advisors, so they got warned and fined millions of dollars. This made people think they might be running a scam. They’ve been dealing with these problems for years. If Spartan Capital Asset Management or its employees made you lose money, you can take legal action against them.

On March 28, 2023, a group decided that the company broke the rules and fined them $600,000. They also have to hire someone from outside to check how they supervise things and fix the paperwork for their employees to show what happened with customer complaints and disagreements. This will cost them $17,768.31.

They got in trouble because they didn’t update their paperwork on time to explain what was happening with customer complaints and money issues. They also didn’t tell anyone about customer complaints involving their top staff quickly enough. This was important information that needed to be shared.

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

Does Spartan Capital Management act as a fiduciary?

All investment advisers must always think about their clients first. But some firms, like Spartan Capital Management, are also licensed to sell investments. When they’re selling investments, they don’t always have to put clients first.

If you want to know if Spartan Capital Management always puts you first, just ask them directly: “Do you always put my interests first?” Also, make sure to check if they have any conflicts of interest or if they’ve had any disciplinary actions.

Understanding Spartan Capital’s Regulatory Issues 

Spartan Capital Asset Management is having lots of problems with rules and complaints from customers because of how they do things. They are part of a group called independent broker-dealers. These kinds of companies are known for not keeping a close eye on their people and processes.

They grow by opening many offices across the country to make money regularly without spending too much on managing each office. Unlike big brokerage firms that have 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 to follow the same rules.

These agents manage their expenses and organization to earn more money. Unfortunately, they often don’t focus on safeguarding the rights and interests of the investors they serve.

Typically, independent broker-dealers supervise their agents by assigning other contractors to oversee specific offices known as Offices of Supervisory Jurisdiction (OSJs). These overseers monitor the agents, but they aren’t solely dedicated to watching them all the time. Additionally, they have their own businesses to run, so they might not pay sufficient attention to the agents’ actions.

Customer Complaints Against Spartan Capital

Many customers complained about Spartan Capital. This caused a problem: they don’t check new accounts, transactions, records, or talk with customers enough at these independent brokerage firms. This lack of checking puts investors at risk if they have accounts with these firms. They might buy securities that haven’t been checked properly or given false information about investments. Sometimes, there’s hardly any oversight to catch mistakes or lies.

Groups like the North American Securities Administrators Association (NASAA) are concerned about independent brokerage firms. They have discovered more instances of wrongdoing and investors losing money in these firms compared to traditional brokerage firms with proper offices and oversight.

As a result, Spartan Capital Asset Management faces regulatory issues and customer complaints because they operate without enough supervision and protection for investors.

Our view

It is totally a scam, so you should avoid unregulated brokers. Even if a broker is regulated, it doesn’t always mean your money is safe. It matters who regulates the broker. That’s why we’re here to help you before you get caught in such scams. If you lost money because of bad advice or excessive trading by Spartan Capital Securities, you might have legal options. A lawyer who understands investment problems can assess your situation and advise you. Our advice is straightforward: choose brokers registered with at least one top-tier regulator.