The Financial Industry Regulatory Authority ordered American Portfolios Financial Services Inc. to pay USD 1,232,939 plus interest in restitution to 295 investors and imposed a USD 400,000 fine. The firm failed to reasonably supervise recommendations that customers sell unit investment trusts before maturity and purchase new UITs, causing them to incur unnecessary sales charges and fees. From January 2018 until American Portfolios became part of Osaic Wealth Inc. in October 2024, its supervisory system and written procedures were not reasonably designed to identify repeated early UIT sales or ensure compliance with FINRA’s suitability rule and Regulation Best Interest’s Care Obligation. Three representatives recommended early sales at rates of 61% or 78%, with affected customers holding the investments for only about half their terms on average. American Portfolios consented to FINRA’s findings without admitting or denying the charges.
2026-09-22Financial Industry Regulatory Authority
US Financial Industry Regulatory Authority orders American Portfolios to pay USD 1.23 million in restitution and a USD 400,000 fine over UIT supervision failures
The Financial Industry Regulatory Authority ordered American Portfolios to pay USD 1.23 million plus interest to 295 investors and fined the firm USD 400,000. Its inadequate supervision failed to detect repeated recommendations to sell unit investment trusts before maturity and buy new UITs, resulting in unnecessary sales charges and fees.