- 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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