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A broker-dealer settled FINRA charges for failing to supervise the suitability of its representatives' recommendations to customers on early rollovers of Unit Investment Trusts ("UITs"). FINRA alleged that the firm violated FINRA Rule 3110 ("Supervision") and FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade") by not establishing and maintaining a supervisory system and written procedures that would have monitored the representatives' recommendations.
To settle the charges, the firm agreed to a (i) censure, (ii) payment of a $300,000 fine, and (iii) payment of restitution to relevant customers in the amount of approximately $1.3 million plus interest.
Primary Sources
Originally published 11 June 2020
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