Broker-Dealer Settles FINRA Charges for Registration Failures of Call Center Personnel

A broker-dealer settled FINRA charges for failing to register third-party workers.

In a Letter of Acceptance, Waiver, and Consent, FINRA stated that the broker-dealer employed over 400 call center workers through a third-party vendor to handle securities transaction-related inquires. FINRA determined that the broker-dealer (i) failed to register or (ii) failed to timely register the call center workers before they began responding to inquires from customers holding variable product policies.

As a result, FINRA determined that the broker-dealer violated FINRA Rules 2010 ("Standards of Commercial Honor and Principles of Trade") and FINRA Rule 1210 ("Registration Requirements").

To settle the charges, the broker-dealer agreed to (i) accept a censure and (ii) pay a $500,000 fine.