The Financial Industry Regulatory Authority (FINRA) has imposed a fine of $1.1 million on Cetera Advisors LLC, Cetera Wealth Services, LLC, formerly known as Cetera Advisor Networks LLC, and Cetera Investment Services LLC.

From at least March 2019 through August 2021, the Cetera firms’ supervisory systems, including their written supervisory procedures (WSPs), were not reasonably designed to achieve compliance with Section 5 of the Securities Act of 1933, in violation of FINRA Rules 3110 and 2010.

Over the same period, the Cetera firms’ anti-money laundering (AML) compliance program was not reasonably designed to detect and cause the reporting of suspicious transactions, in violation of FINRA Rules 3310(a), 3310(f)(ii), and 2010.

Additionally, from at least January 2017 through August 2021, Cetera Advisors failed to reasonably supervise the creation and dissemination of consolidated reports and failed to preserve such reports, in violation of Section 17(a) of the Securities Exchange Act of 1934, Exchange Act Rule 17a–4(b)(4), and FINRA Rules 3110, 4511 and 2010.

For these violations, the Cetera firms are censured, fined $1.1 million, and have agreed to an undertaking.