BBVA Securities Inc has agreed to pay a fine of $150,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From at least March 2019 to August 2021, BBVA failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to monitor rates of deferred variable annuity (VA) exchanges.
When supervising VA exchanges, the firm relied on transaction-by- transaction approvals from regional supervisors, along with periodic reports of each representative’s exchange activity. The periodic reports only included information regarding a single month’s exchange transactions and did not include the representative’s rate of exchange.
The firm had no report, alert, or other system or review that surveilled for representatives’…
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