The Financial Industry Regulatory Authority (FINRA) recently sanctioned Ameriprise for failures to deliver account records to clients at account openings, Banca IMI Securities Corp for CEO supervisory failures and Coburn & Meredith Inc. for the sale of UITs. FINRA censured Ameriprise Financial Services in Minneapolis and fined it $150,000 after alleging that it failed to create and send to approximately 219,000 customers an account record within 30 days of opening the account. The firm created the account records but only sent them to customers if the systems ran in a particular sequence, otherwise no records were sent. FINRA found that Ameriprise’s supervisory system and written supervisory procedures were what allowed the failing of the system.
Banca IMI Securities Corp was censured and fined $250,000 by FINRA when the regulatory authority found that the firm failed to have an adequate supervisory system in place. The firm’s CEO also spent almost $900,000 of the firm’s funds on certain works of art created and sold by his relatives and fund charitable donations to entities with which he had a personal connection or interest.
FINRA also fined Coburn & Meredith Inc. $75,000 and censured the firm. Coburn was also ordered to pay $203,097.47, plus interest in restitution to customers with respect to the sale of unit investment trusts (UITs). The firm allegedly failed to identify and apply sales charge discounts to certain customers’ eligible purchases of UITs. This resulted in the customers paying excess charges of $203,097.47. FINRA also found that the firm failed to have supervisory systems in place.
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