← Broker database 2025-01-08
Investments for You Fined $25,000 for Reg BI and Form CRS Compliance Failures
According to FINRA, Investments for You, Inc. has been censured and fined $25,000 for willfully violating Exchange Act Rule 15l-1(a)(1) by failing to establish written policies and procedures and a supervisory system designed to comply with Regulation Best Interest (Reg BI).
Despite being advised by FINRA in 2021 and 2022 that it was required to establish Reg BI policies and procedures, the firm failed to do so until September 2024. The firm also failed to establish supervisory procedures relating to its customer relationship summary (Form CRS) obligations despite similar warnings.
The firm falsely responded "No" to the question concerning legal or disciplinary history on its Form CRS filed in August 2020, even though the firm and its CEO had prior disciplinary history. Despite being advised in 2021 that this response was inaccurate, the firm did not update its Form CRS until July 2022.
Additionally, the firm failed to respond to FINRA document requests for nearly four months, resulting in a suspension of its membership. The firm only provided the requested documents nearly two months after the suspension and four months after FINRA first requested them.
Reg BI requires broker-dealers to act in their customers' best interest. Form CRS provides important disclosure about a firm's services and history. When firms ignore these requirements despite repeated warnings, it undermines investor protection.