- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-09-18T18:53:00
First Horizon Advisors will pay a $325,000 fine to settle allegations from the Securities and Exchange Commission (SEC) that it violated Regulation Best Interest in part due to issues with incorporating a merged firms’ accounts into its systems.
The Tennessee-based broker-dealer, a subsidiary of First Horizon Bank, failed to maintain and enforce its policies and procedures–and violated RegBI–related to recommendations made on a derivative security called a structured note, the SEC said in a press release Wednesday.
The violations began in 2021, when First Horizon migrated more than 5,000 customer brokerage accounts from broker-dealer Iberia Financial Services into its system as part of a 2020 merger. The two firms had incompatible systems, leaving First Horizon without access to accurate customer information required to review the structured note recommendations for compliance with First Horizon’s policies and procedures. The misalignment lasted about a year, the SEC said in its order.
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A subsidiary of the Teachers Insurance and Annuity Association of America agreed to pay more than $2.2 million as part of a settlement with the Securities and Exchange Commission for not acting in the best interest of its retail customers regarding their retirement accounts.
Registered broker-dealer Laidlaw and Company agreed to pay more than $800,000 as part of a settlement with the Securities and Exchange Commission addressing multiple alleged violations of Regulation Best Interest.
Citigroup Global Markets and Citi International Financial Services agreed to pay a total of nearly $2 million as part of a settlement with the Securities and Exchange Commission resolving allegations they violated the disclosure obligations of Regulation Best Interest.
The Public Company Accounting Oversight Board fined five consultancies, including Ernst & Young, as the agency continues its crackdown on firms violating audit committee communications rules and reporting requirements.
Aviation maintenance services provider AAR Corp. disclosed that several former employees may have bribed officials in Nepal and South Africa to win contracts, and chose to self-report violations of the Foreign Corrupt Practices Act to authorities in the U.S. and U.K.
Regulators continue to hammer firms with fines for violating rules regarding the use of unapproved communication methods by employees, issuing $120 million in fines this week. And for the first time, two firms were not fined because they self-reported their violations.
