IFP Securities, LLC has agreed to pay a fine of $100,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From November 2022 through November 2025, IFP’s written supervisory procedures (WSPs) required supervisors to conduct a daily review of mutual fund and unit investment trust (UIT) transactions for compliance with Reg BI.

IFP’s system to identify mutual fund and UIT transactions for supervisory review was an automated surveillance system that generated daily alerts. IFP intended the system to generate an alert when mutual funds were sold close in time to a purchase or purchased close in time to a sale.

IFP also intended the system to generate an alert when a UIT was sold before maturity or purchased close in time to a sale. As of November 2022, the firm changed vendors for its automated surveillance system. As an unintended consequence of that change, the firm’s system did not work properly to generate these alerts.

Once IFP became aware that its surveillance system was not working as intended, it worked with its vendor to fix the system. However, the system was not functional until 2025.

During the period while the alerts were not working correctly, the firm did not have an alternative supervisory system in place to review for recommendations of switching and short-term trading in mutual funds and UITs.

As a result, IFP failed to review mutual fund and UIT transactions to evaluate whether the recommendations were in its customers’ best interest. This included transactions where a customer sold a mutual fund and reinvested some or all of the proceeds into another mutual fund or sold a mutual fund a short time after purchase, and transactions where a customer sold a UIT and rolled some or all of the proceeds into another UIT or sold a UIT prior to maturity, including a short time after purchase.

As a result, IFP failed to reasonably supervise thousands of mutual fund and UIT transactions that would have generated alerts had the firm’s surveillance system been functioning properly. IFP also failed to maintain and enforce written policies and procedures that were reasonably designed to achieve compliance with Reg BI.

Therefore, IFP violated Exchange Act Rule 15l-1(a)(1) and FINRA Rules 3110 and 2010.

The firm has agreed to a censure in addition to the $100,000 fine.

IFP Securities has been a FINRA member since February 2019. The firm has approximately 290 registered representatives and approximately 140 branches, including its headquarters in Tampa, Florida. The firm engages in a general securities business.