Defendant Name: First Horizon Advisors, Inc.

Defendant Type: Subsidiary of Public Company

Document Reference: 2024-136

Document Details

Legal Case Name In the Matter of First Horizon Advisors, Inc.
Document Name SEC Charges Broker-Dealer First Horizon With Regulation Best Interest Violations; Firm's structured note recommendations violated Reg BI's compliance obligation
Document Date 18-Sep-2024
Document Format Administrative Proceeding
File Number 3-22142
Allegation Type Broker Dealer
Document Summary On September 18, 2024, the SEC "today announced charges against registered broker-dealer First Horizon Advisors, Inc. for failing to maintain and enforce policies and procedures reasonably designed to achieve compliance with Regulation Best Interest (Reg BI). The charges relate to First Horizon’s recommendations of a type of derivative security called a structured note. First Horizon agreed to pay a civil penalty of $325,000 to resolve the SEC’s charges."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Monetary Penalties:

Civil Penalty

Individual:     $325,000.00 Shared:    

Related Documents:

34-101071 18-Sep-2024 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934 and Section 203(e) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On September 18, 2024, the SEC instituted settled administrative and cease-and-desist proceedings against First Horizon Advisors, Inc., stating: "This proceeding arises out of First Horizon’s failure to comply with Regulation Best Interest (“Reg BI”), specifically Reg BI’s Compliance Obligation, which requires broker-dealers to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Reg BI. Exchange Act Rule 15l-1(a)(2)(iv). Between July 1, 2020, and at least July 31, 2023 (“Relevant Period”), First Horizon did not maintain and enforce its Reg BI-related policies and procedures for structured notes that First Horizon’s registered representatives recommended to retail customers."