Broker-Dealer Settles FINRA Charges for Failure to Apply Variable Annuities Sales Charge Waivers

A broker-dealer agreed to settle FINRA charges for failing to identify and apply available sales charge waivers on sales of variable annuities to eligible retirement accounts and charitable organizations. Kestra Investment Services, LLC ("Kestra") allegedly failed to train its employees fully and failed to establish and maintain a sufficient supervisory system designed to make sure that eligible customers who bought mutual fund shares received the benefit of applicable sales charge waivers.

To settle the rule violations, Kestra agreed to a censure, and to pay $225,000.