Securities Law Updates | New Releases/No Action Letters
July 28, 2010
FINRA Orders SunTrust Investment Services to Pay $1.44 Million for Unsuitable UIT, Closed-End Fund and Mutual Fund Transactions
FINRA Complaints Against SunTrust Investment Services, Donald A. Mattran, Jr., and David E. Brendenburg
CRD Nos. 17499, 2342760, 2592172, 7/22/2010
The Financial Industry Regulatory Authority (“FINRA”) has ordered SunTrust Investment Services, Inc. of Atlanta, GA, to pay $1.44 million to resolve charges related to unsuitable unit investment trust (“UIT”), closed-end fund (“CEF”) and mutual fund transactions. Of that amount, $900,000 is a fine that includes nearly $224,000 in disgorgement of commissions earned on the unsuitable trades. The remaining $540,000 represents restitution to 17 customers who incurred losses.
As part of this settlement, SunTrust must also review all UIT purchases and provide remediation to all eligible customers who did not receive the maximum sales charge discount.
“Firms must monitor for patterns of…
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