13F-HR/A: StoneX Amends 13F Filings, Corrects Under-Reported Holdings

StoneX Group Inc. filed an amended Form 13F-HR to restate quarterly holdings from Q4 2021 through Q1 2025, correcting significant under-reporting errors.

Summary

• StoneX Group Inc. filed an amended Form 13F-HR (Amendment Number 1) on August 13, 2025, to restate its quarterly holdings report for the period ended June 30, 2024.
• The amendment is a restatement to correct under-reported total securities, shares, and market values in quarterly filings from Q4 2021 through Q1 2025.
• The internal review identified four main causes for the errors: inadvertently excluded market making accounts (Q4 2021 Q4 2024), a formula error in Excel using 'XLOOKUP' instead of 'SUMIF' (Q1 2022 Q4 2022), failure to properly implement SEC Rule 87 FR 38943 regarding rounding dollar values (Q4 2022 Q1 2025), and an Excel scientific notation error for CUSIPs with an 'E' (Q4 2021 Q1 2025).
• The report includes 2 other managers: StoneX Advisors Inc. and StoneX Financial Inc.
• The Form 13F Information Table contains 295 entries with a total market value of $1,039,239,381.

Sentiment

Score: 4

Explanation: The sentiment is moderately negative due to the discovery of significant and prolonged under-reporting errors, indicating weaknesses in internal controls and compliance. However, the proactive internal review and subsequent amendment to correct these errors provide a positive aspect of remediation and commitment to transparency.

Positives

• The company conducted an internal review that successfully identified and is correcting past reporting inaccuracies, demonstrating a commitment to compliance and data integrity.
• The filing provides a detailed breakdown of the causes of the errors, indicating transparency in addressing the issues.

Negatives

• Significant under-reporting of securities, shares, and market values occurred over an extended period from Q4 2021 through Q1 2025.
• Multiple internal control weaknesses were identified, including missing accounts, Excel formula errors, and failure to implement regulatory rule changes.
• The errors affected all other reporting managers: StoneX Advisors Inc., StoneX Financial Inc., and Trust Advisory Group, Ltd.

Risks

• Potential for increased regulatory scrutiny from the SEC due to a history of under-reporting and internal control deficiencies.
• Risk of reputational damage among investors and the market due to past inaccurate financial disclosures.
• Ongoing risk of internal control weaknesses if the root causes of the identified errors are not fully and permanently remediated.

Future Outlook

The filing does not provide forward-looking statements regarding business operations or financial performance. Its focus is solely on correcting past reporting inaccuracies and ensuring compliance with SEC regulations for historical data.

Management Comments

• During an internal review of StoneX Group Inc.'s Section 13(f) reporting practices, we discovered the quarterly filings from Q4 2021 through Q1 2025 under-reported the total number of securities, shares, and market values.
• The errors involved all Other Reporting Managers: StoneX Advisors Inc., StoneX Financial Inc., and Trust Advisory Group, Ltd.

Industry Context

This filing highlights the critical importance of robust internal controls and accurate data management for institutional investment managers in the financial industry. Errors in SEC filings, particularly Form 13F, can lead to regulatory scrutiny and impact investor confidence. While such amendments are not uncommon, the prolonged period and multiple causes of under-reporting indicate a significant lapse in standard financial reporting practices.

Comparison to Industry Standards

• The identified errors, stemming from missing accounts, Excel formula issues, and non-implementation of regulatory rules, fall below the industry standard for financial reporting accuracy and internal control effectiveness expected of a publicly traded institutional investment manager.
• Compared to peers who maintain stringent compliance frameworks, StoneX Group Inc.'s past reporting practices, as revealed by this amendment, indicate a need for significant improvement in their data governance and regulatory compliance processes.

Corporate Governance

Stakeholder Impact

• Shareholders: May experience concerns regarding the accuracy of past reported holdings and the reliability of financial disclosures, potentially impacting investor confidence.
• Regulatory Authorities: The SEC may initiate further inquiries or impose penalties due to the identified non-compliance and internal control deficiencies.

Next Steps

• Continued internal review and enhancement of financial reporting processes to prevent recurrence of similar errors.
• Ensuring full compliance with all SEC reporting rules, including proper rounding of dollar values and accurate CUSIP identification.

Key Dates

Recommendation

This filing is an amendment to correct past reporting errors, not an update on the company's operational performance or strategic direction. While the discovery of significant, prolonged under-reporting is a negative indicator of internal controls, the company's proactive step to identify and correct these errors is a positive sign of remediation. The filing does not provide new information that would fundamentally alter the investment thesis for StoneX Group Inc. at this time, thus a 'hold' recommendation is appropriate as investors await further clarity on the effectiveness of their enhanced compliance measures and any potential regulatory outcomes.

Keywords

StoneX Group, SEC filing, 13F-HR, amendment, restatement, holdings report, investment management, financial reporting, compliance, internal controls, regulatory disclosure