The Financial Industry Regulatory Authority (FINRA) has fined Investments for You, Inc. $25,000 for failing to establish and maintain an adequate supervisory system, it was revealed Friday.
Investments for You Fined $25,000 for Supervisory Failures
The Ohio-based broker-dealer was found to have violated several FINRA rules between June 2020 and September 2024.
According to FINRA’s investigation, Investments for You did not implement policies to comply with Regulation Best Interest (Reg BI), which mandates brokers to act in the best interest of retail customers.
“Investments for You failed to establish and maintain written policies and procedures, and a supervisory system, reasonably designed to achieve compliance with Securities Exchange Act of 1934 Rule 15/-1 (Regulation Best Interest or Reg BI),” wrote FINRA.
Despite multiple notices from the regulator, the firm is said to have failed to adopt necessary policies until September 2024, four years after the compliance deadline.
Additionally, Investments for You reportedly did not meet its obligations under the Exchange Act to maintain a supervisory system for filing and updating its customer relationship summary (Form CRS).
FINRA highlighted that Investments for You inaccurately reported no legal or disciplinary history on Form CRS, despite prior disciplinary actions against the firm and its CEO.
Further violations included the firm’s delayed response to two FINRA requests for documents and information, leading to a temporary suspension of its membership.
Investments for You accepted the findings without admitting or denying them and agreed to the censure and monetary penalty. FINRA added that the firm has since taken steps to address the supervisory deficiencies.
