Atlanta Firm To Pay FINRA Fine Over Fund-Switching Lapses
By Al Barbarino (February 10, 2021, 8:22 PM EST) -- An Atlanta-based investment adviser will pay nearly $200,000 in a settlement with the Financial Industry Regulatory Authority over findings that the firm shirked its supervisory compliance obligations when allowing customers' investments to be switched between mutual funds.
The regulator said in a settlement with Triad Advisors, finalized Tuesday, that between 2015 and 2017, the firm failed to "reasonably" supervise its representatives to comply with the suitability requirements of mutual fund switches, which entail selling shares in one mutual fund and reinvesting the proceeds into another.
"Triad failed to establish and maintain a reasonable supervisory system to achieve compliance with suitability requirements...
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