Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

SEC Charges First Horizon Advisors for Regulation Best Interest Violations

Posted on October 15th, 2024 at 4:09 PM
SEC Charges First Horizon Advisors for Regulation Best Interest Violations

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

The Securities and Exchange Commission (SEC) has charged First Horizon Advisors, LLC, a registered broker-dealer, with violating Regulation Best Interest (Reg BI). The charges stem from the firm’s failure to maintain and enforce policies designed to ensure compliance with Reg BI, particularly regarding recommendations of structured notes.

In 2021, First Horizon merged with another broker-dealer, which resulted in the transfer of 5,000 customer brokerage accounts. However, due to system incompatibility between the two firms, First Horizon lacked the necessary customer data to properly review structured note recommendations for Reg BI compliance. Additionally, registered representatives from the merging firm were unable to access First Horizon’s exception reporting system, which prevented them from reviewing flagged transactions as required by the firm's procedures.

Without admitting or denying the SEC’s findings, First Horizon agreed to a cease-and-desist order, a censure, and a $325,000 civil penalty. This case highlights the importance of maintaining robust compliance systems, particularly during mergers.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.

1786553985 Law
August 12, 2026
Proposed FINRA Enforcement Reforms Draw Mixed Reactions From Industry Participants

A new report recommending changes to the Financial Industry Regulatory Authority's (FINRA) enforcement program has generated mixed reactions from investor advocates, securities attorneys and industry professionals, according to ThinkAdvisor.