Broker First Horizon to pay fine to settle US SEC charges, regulator says
Updates with First Horizon's response
NEW YORK, Sept 18 (Reuters) -Broker-dealer First Horizon Advisors, Inc has agreed to pay a civil penalty of $325,000 in connection with its recommendations for certain products, the U.S. Securities and Exchange Commission said in a statement on Wednesday.
The SEC found First Horizon failed to maintain and enforce policies and procedures reasonably designed to achieve compliance with Regulation Best Interest (Reg BI). First Horizon did not comply with the new rule in multiple ways, including by approving recommendations to customers without having all the accurate information they needed to review for some accounts, the SEC said in the statement.
First Horizon did not admit or deny the SEC's findings. The firm cooperated with the SEC's investigation and has taken steps to ensure full compliance going forward, a spokesperson for the firm said in an emailed statement.
To settle the SEC's charges, First Horizon agreed to a censure and a cease-and-desist order, in addition to the civil penalty.
Reporting by Chris Prentice; Editing by David Gregorio
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