According to reports, Ameriprise Financial Services Inc. has agreed to pay a $100,000 fine to settle charges by the Financial Industry Regulatory Authority that the firm failed to supervise closed-end fund sales.
Finra alleged that from January 2010 through April 2013, Ameriprise did not have adequate supervisory systems in place to prevent churning of newly issued closed-end funds.
The case stemmed from an earlier incident involving a former broker at the firm, Michael Halla.
Last year, Halla agreed to pay a $10,000 fine and $18,000 in disgorgement, plus serve a two-month suspension. Finra alleged that Halla engaged in short-term trading of new closed-end funds in 20 customer accounts during 2010 and 2011.
In the case against the firm, Finra claimed that Ameriprise compliance personnel twice flagged Halla’s trading but failed to follow up.
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