Truist Investment Services to Pay $275k FINRA Fine for Cancel and Rebill Violations

Truist Investment Services, Inc. (TIS) has agreed to pay a $275,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA). The firm also agreed to a censure.

According to FINRA, from at least March 2023 to July 2023, a TIS registered representative (Representative A) engaged in improper cancel and rebill activity. The representative canceled trades placed in his personal TIS brokerage account and later rebilled them to certain customers' brokerage accounts without the customers' knowledge or authorization, causing those customers to incur significant losses.

FINRA also found that TIS failed to reasonably identify and investigate red flags of Representative A's improper cancel and rebill activity. Additionally, from at least March 2023 to August 2023, TIS failed to establish and maintain a supervisory system, including written procedures, reasonably designed to identify and respond to improper trade correction activity.

As a result, TIS violated FINRA Rules 3110(a) and (b) and 2010.

TIS has been a FINRA member firm since July 1986 and conducts a general securities business with retail customers. Headquartered in Atlanta, Georgia, the firm has over 2,100 registered representatives at 2,614 branches.