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

From April 2009 to at least May 2023, NFS failed to timely transfer over 5,600 Unit Investment Trusts (UITs) through the Automated Customer Account Transfer Service (ACATS), and it further failed to transfer approximately 4,000 of those UITs in kind, as customers had instructed.

As a result, NFS violated FINRA Rules 11870(e) and 2010.

Additionally, since at least April 2009, NFS has failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA Rule 11870(e), in violation of FINRA Rules 3110 and 2010.

For these violations, NFS was censured, fined $100,000, and agreed to an undertaking.

National Financial Services LLC (NFS) has been a FINRA member since January 1983 and is headquartered in Boston, Massachusetts. NFS is a carrying broker-dealer that, among other things, provides clearing and custodial services to affiliated and unaffiliated introducing broker-dealers. The firm has approximately 70 branch offices and over 2,000 registered representatives.