Triad Advisors to pay more than $200,000 for failing to give sales charge discounts on unit investment trusts, Finra says

Triad Advisors to pay more than $200,000 for failing to give sales charge discounts on unit investment trusts, Finra says
Firm agreed to a settlement that includes a $125,000 fine and $102,632 in restitution.
OCT 04, 2016
Triad Advisors, a Norcross, Ga.,-based broker, has agreed to pay more than $200,000 in fines and restitution for failing to give some of its customers sales charge discounts on unit investment trusts, according to a settlement letter with the Financial Industry Regulatory Authority Inc. The firm, which has 838 registered representatives and 328 branch offices, has consented to be censured and to pay $125,000 in fines and $102,632 in restitution, according to the settlement letter. It did not admit or deny the findings. Triad Advisors did not respond to a request for comment. According to Finra, the firm failed to apply sales charge discounts to clients' unit investment trusts, or UITs, between May 2009 and April 2014, and did not have a supervisory system in place or appropriate supervisory procedures to oversee these transactions. Triad did not apply sales charge discounts to 1,088 eligible UIT purchases, resulting in excessive sales of $102,631, the letter stated. Advisers can reduce the sales fee charged on a UIT by “breakpoints,” such as increasing the size of their investments, or through discounts on rollovers and exchanges, known as sales charge discounts. Triad did not have a supervisory system in place to identify and apply these discounts before May 2012. At that time the system identified only breakpoints and not sales charge discounts, which accounted for more than 85% of Triad's missed discounts, Finra stated.

Latest News

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

Farther adds $120M firm with science-backed approach to wealth management
Farther adds $120M firm with science-backed approach to wealth management

The latest addition to the tech-driven firm combines wellness and finances.

Cutting back on fun: a third of Americans plan to reduce spending on vices
Cutting back on fun: a third of Americans plan to reduce spending on vices

Your clients are likely to be spending on vices, depending on their generation.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.