The Financial Industry Regulatory Authority (FINRA) fined six independent broker dealers who failed to give certain clients discounts on large purchases of non-traded REIT’s.
According to InvestmentNews, the six firms were fined a total of more than $500,000 with Voya and Transamerica receiving the largest fine. Voya was fined $325,000 and ordered to pay restitution of $42,000, while Transamerica’s fines and restitution totaled $136,000.
The other four firms fined by FINRA included Investacorp, J.P Turner &Co., National Planning Corp, and Cetera Investment Services.
InvestmentNews reports that typically when the sale is greater than $500,000 discounted prices become available on the sale of certain non-traded REITs. It appears the firms relied on the brokers and supervisors implement the appropriate discounts.
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