FINRA Sanctions Infinity Financial Services for Supervisory Issues
According to a Letter of Acceptance Waiver and Consent (AWC) signed December 8, The Financial Industry Regulatory Authority (FINRA) has censured and fined Infinity Financial Services (CRD No. 144302) after it allegedly failed to investigate its new hires’ backgrounds.
From March 2014 through April 2017, the firm allegedly lacked a supervisory system reasonably designed to make sure that it did background checks on its new hires, including a review of their disciplinary histories, financial circumstances and qualifications, according to the AWC.
FINRA alleges that when recruiting new registered representatives, Infinity used Google and Central Registration Depository disclosures made by prior employers, as well as a form for new hires asking them to indicate pending disciplinary actions, customer complaints, arbitrations, investigations and liens or judgements. According to FINRA, Infinity did not contact its applicants’ former employers.
Due to the failure,the firm reportedly hired 16 registered representatives during the period in question without checking their CRD records and purportedly failed to find pending bankruptcies, judgments and tax liens for five of them.
Further, from November 2016 through May 2017, Infinity allegedly grew its number of associated persons and branch offices beyond its membership agreement from 2013, without reporting the information to the regulator as required, FINRA says. The firm reportedly grew from 41 associated persons and 36 offices in November 2013 to 60 associated persons and 49 offices by May 2017, according to the AWC.
Infinity agreed to the sanctions of a censure and a $35,000 fine, as well as to file a continuing membership application with the regulator.
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Tags: Infinity Financial Services, Infinity Financial Services background checks, Infinity Financial Services fined, Infinity Financial Services regulations, Infinity Financial Services sanctions, Securities Attorney Last modified: December 11, 2020