Cambridge Investment Research, Inc has agreed to pay a fine of $150,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From at least January 2018 to February 2025, Cambridge failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to surveil rates of deferred variable annuity exchanges.

As a result, the firm failed to detect 22 “inappropriate exchanges,” as defined in FINRA Rule 2330(d), by a former registered representative that caused 14 customers to incur $129,938.79 in unnecessary surrender fees.

Accordingly, Cambridge violated FINRA Rules 3110, 2330(d), and 2010.

On top of the $150,000 fine, Cambridge has agreed to a censure. The firm must also pay restitution in the amount of $129,938.79 plus interest to affected customers.

Cambridge, which has been a FINRA member since 1995, maintains its principal place of business in Fairfield, Iowa. The firm conducts a general securities business and offers investment products and services, including variable annuities, to retail customers. The firm has approximately 4,900 registered representatives.