Title: First Horizon Advisors Agrees to $325,000 Civil Penalty for Violating SEC Regulations
In a recent development, broker-dealer First Horizon Advisors, Inc has agreed to pay a civil penalty of $325,000 for its failure to comply with Regulation Best Interest (Reg BI), as reported by the U.S. Securities and Exchange Commission. The SEC found that First Horizon did not have proper policies and procedures in place to ensure compliance with the new rule, leading to recommendations being made without accurate information for some accounts.
Despite not admitting or denying the SEC's findings, First Horizon has agreed to a censure, a cease-and-desist order, and the payment of the civil penalty to settle the charges.
Analysis: This news highlights the importance of broker-dealers and financial advisors following regulatory requirements to ensure the protection of investors. Failure to comply with regulations such as Reg BI can result in significant penalties and reputational damage for firms. Investors should be aware of the regulatory environment in which their advisors operate to make informed decisions about their finances.