William Galvin: Infinex Investments fined $125,000

Infinex Investments has settled with Massachusetts securities regulators for failing to adequately supervise agents who were selling high-commission securities products, including real estate investment trusts and variable annuities, primarily to senior customers at local banks who didn't understand the products. The brokerage firm is majority-owned by a group of nearly 40 banks that offer securities on bank premises and has selling agreements with approximately 30 banks in Massachusetts. The order censures Infinex and requires it to pay a fine of $125,000 and to make full restitution to investors. The Massachusetts Securities Division began an investigation into sales practices by Infinex after receiving complaints from senior citizens, who believed they had been sold investments they did not ask for or did not understand. "Senior investors are far too often misled at their banks to believe that they are buying products similar to CDs. Broker- dealers operating on bank premises have both a legal and ethical duty to make clear to the customers that they are no longer dealing with the bank. Unfortunately, our investigation uncovered serious failures in this regard," said William Galvin, secretary of the commonwealth.