FINRA Fines Navaid Financial Services$35,000 for Municipal Trade Reporting Failures

Navaid Financial Services, Inc has agreed to pay a $35,000 fine and accept a censure after the Financial Industry Regulatory Authority (FINRA) concluded that the firm failed to comply with municipal securities reporting rules over a multi-year period.

According to the settlement, the firm did not include the required Non-Transaction-Based Compensation (NTBC) indicator in 12,066 municipal securities trades reported to the Municipal Securities Rulemaking Board's Real-Time Transaction Reporting System (RTRS). The reporting lapses occurred between May 29, 2018 and July 23, 2024, violating MSRB Rule G-14, which governs the accuracy and timeliness of municipal trade reporting.

Regulators also found that Navaid lacked a supervisory framework capable of ensuring compliance with the same rule. From May 2018 through June 2025, the firm did not maintain written procedures or controls designed to detect or prevent reporting failures, prompting an additional violation under MSRB Rule G-27.

The firm has been registered with FINRA and the MSRB since 1997. Based in Haddonfield, New Jersey, Navaid engages primarily in the sale of municipal bonds and related fixed-income products. While the settlement did not describe client harm, it highlighted the importance regulators place on accurate transaction reporting, which is used to maintain transparency and market integrity.

The censure and fine conclude the matter, with FINRA noting that Navaid consented to the findings without admitting or denying the violations.