FINRA Sanctions Planmember Securities Corp., Carpinteria, CA
According to FINRA’s September Disciplinary report, on July 3, 2019, the regulator reportedly sanctioned Planmember Securities Corp. (CRD #11869, Carpinteria, California) with a censure and a $90,000 fine.
Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it had no WSPs or reasonable supervisory system for the surveillance of rates of variable annuity exchanges.
FINRA’s findings stated that the firm purported to use a spreadsheet prepared each month that summarized all variable annuity transactions but this spreadsheet failed to indicate whether particular transactions were exchanges.
Planmember reportedly could not determine if any of its associated persons had rates of exchanges requiring further review concerning inappropriate exchanges. The firm allegedly failed to establish or maintain a reasonable supervisory system, including WSPs, related to the review or approval of consolidated reports with respect to compliance.
Further, the firm also allegedly failed to supervise the preparation and use of consolidated reports by its registered representatives. The findings also included that the firm failed to establish, maintain and enforce a reasonable supervisory system, including WSPs, for the review of email and hard copy customer correspondence. Consequently, any sales practice concerns or red flags raised through such correspondence could reportedly go undetected for long periods of time.
Planmember reportedly also failed to supervise representatives’ social media sites as well as preapprove websites operated by representatives as required by its WSPs, according to the regulator.
For FINRA’s full findings, see FINRA Case #2015047824201.
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