Truist Investment Services, Inc has agreed to pay a fine of $275,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From at least March 2023 to July 2023, a TIS registered representative (Representative A) engaged in improper cancel and rebill activity when he canceled trades he placed in his personal TIS brokerage account and later rebilled them to certain of his customers’ brokerage accounts, without the customers’ knowledge or authorization, causing those customers to incur significant losses.

TIS failed to reasonably identify and investigate red flags of Representative A’s improper cancel and rebill activity.

Additionally, from at least March 2023 to August 2023, TIS failed to establish and maintain a supervisory system, including written procedures, reasonably designed to identify and respond to improper trade correction activity.

Accordingly, TIS violated FINRA Rules 3110(a) and (b) and 2010.

The firm has agreed to a censure in addition to the $275,000 fine.

TIS has been a FINRA member firm since July 1986 and conducts a general securities business with retail customers. Headquartered in Atlanta, Georgia, the firm has over 2,100 registered representatives at 2,614 branches.