Truist Investment Services, Inc (TIS) has agreed to pay a $275,000 fine and accept a censure to settle Financial Industry Regulatory Authority (FINRA) findings that it failed to supervise improper trade-correction activity by one of its registered representatives.
According to FINRA, from at least March 2023 to July 2023 a TIS registered representative, identified only as Representative A, cancelled trades he had placed in his personal TIS brokerage account and later rebilled them to certain of his customers' brokerage accounts. The customers did not know about or authorise the transfers and incurred significant losses as a result.
FINRA found that TIS failed to reasonably identify and investigate red flags of that cancel-and-rebill activity.
The regulator also determined that, from at least March 2023 to August 2023, the firm failed to establish and maintain a supervisory system, including written procedures, reasonably designed to identify and respond to improper trade correction activity.
On that basis, FINRA concluded that TIS violated FINRA Rules 3110(a) and (b) and 2010.
About Truist Investment Services
TIS has been a FINRA member firm since July 1986 and conducts a general securities business with retail customers. The Atlanta, Georgia-headquartered firm has over 2,100 registered representatives across 2,614 branches.
