An MFDA hearing panel has accepted a settlement agreement between MFDA staff and Investia Financial Services, and the following sanctions were imposed:
- a fine of $200,000; and
- costs of $20,000.
In the settlement agreement, Investia Financial admits it failed to adequately supervise, and establish and maintain adequate internal controls pertaining to, outside business activities of approved persons.
Investia Financial also failed to adequately supervise, and establish and maintain adequate internal controls pertaining to, the activities of an approved person who altered KYC information in at least two client accounts without the affected clients’ knowledge or authorization. The approved person, a mutual fund salesperson, maintained and used pre-signed forms and/or photocopied forms, some of which were falsified, says the settlement agreement.
The firm also failed to notify the affected clients and the MFDA.