Assets under management Growth by Quarter
Quarterly points use the latest ADV filing or SEC roster snapshot available in each quarter.
Total AUM
Total Accounts
10Y AUM Change
Private Funds
Private funds reported by Voya Financial Advisors, Inc..
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Employee Growth by Quarter
Quarterly points use the latest ADV filing or SEC roster snapshot available in each quarter.
Total Employees
Clients per Employee
10Y Employee Change
Historical AUM and employee figures reflect available SEC Form ADV filings under this CRD. Filing gaps may reflect registration status changes, dormant periods, state registration periods, firm restructuring, or other reporting changes. Rialytix does not interpolate missing periods.
Ownership
Reported direct and indirect ownership ranges
Each range applies to a separate reported relationship and should not be added together.
Reported ownership ranges
Highlighted bands show the percentage range reported in Form ADV.
0%25%50%75%100%
VOYA HOLDINGS INC.Direct owner · Schedule AInterest in VOYA FINANCIAL ADVISORS, INC.
75%+
VOYA FINANCIAL, INC.Indirect owner · Schedule BInterest in VOYA HOLDINGS INC.
75%+
Bars represent the reported range at that individual ownership step, not an estimated percentage of the advisory firm. Indirect relationships may refer to intermediate entities rather than directly to Voya Financial Advisors, Inc...
Reported ownership and control details
Form ADV · Filing date 2026-09-16 · Schedules A and B
| # | Owner / person & role | Interest in entity | Reported interest | Control person | Title / status acquired | Source |
|---|---|---|---|---|---|---|
| 1 | VOYA HOLDINGS INC.100% SHAREHOLDERDomestic entity | VOYA FINANCIAL ADVISORS, INC. | 75% or moreCode E | Yes | 100% SHAREHOLDER12/2012 | Schedule APDF page 53 |
| 2 | JONATHAN FRANCIS REILLYPRESIDENTIndividual | VOYA FINANCIAL ADVISORS, INC. | Less than 5%Code NA | Yes | PRESIDENT06/2024 | Schedule APDF page 53 |
| 3 | STEPHAN ANTHONY PAASCHCHIEF COMPLIANCE OFFICERIndividual | VOYA FINANCIAL ADVISORS, INC. | Less than 5%Code NA | Yes | CHIEF COMPLIANCE OFFICER09/2022 | Schedule APDF page 53 |
| 4 | FREDERICK HENRY BOHNCHIEF FINANCIAL OFFICERIndividual | VOYA FINANCIAL ADVISORS, INC. | Less than 5%Code NA | Yes | CHIEF FINANCIAL OFFICER06/2025 | Schedule APDF page 53 |
| 5 | JOHN J DEPRATTIVP, OPERATIONS PRINCIPALIndividual | VOYA FINANCIAL ADVISORS, INC. | Less than 5%Code NA | Yes | VP, OPERATIONS PRINCIPAL10/2025 | Schedule APDF page 54 |
| 6 | VOYA FINANCIAL, INC.SHAREHOLDERDomestic entity | VOYA HOLDINGS INC. | 75% or moreCode E | Yes | SHAREHOLDER04/2014 | Schedule BPDF page 54 |
Less than 5% may include zero. Code F identifies a role without specifying a percentage. Reported interests may overlap and may not include every owner. Total indirect ownership is not calculated.
Compliance & Disclosures
Filing dated 9/16/2026 5:17:49 PM
Responses were selected by the RIA in its filing. Questions are shortened for readability; “you” refers to the reporting firm, and some questions also cover advisory affiliates.
RIA or supervised-person involvementThe RIA reported that one or more events below involve the firm or its supervised persons.RIA responseYes
AFelonies1 Yes1 No
In the past ten years, have you or any advisory affiliate:
- A1Been convicted of or pleaded guilty or no contest to a felony?No
- A2Been charged with a felony?Yes
BMisdemeanors2 No
In the past ten years, have you or any advisory affiliate:
- B1Been convicted of or pleaded guilty or no contest to a misdemeanor involving investments, an investment-related business, fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, or extortion?No
- B2Been charged with a misdemeanor of the kind listed above?No
CSEC or CFTC actions3 Yes2 No
Has the SEC or CFTC ever:
- C1Found you or an advisory affiliate made a false statement or omission?No
- C2Found you or an advisory affiliate violated SEC or CFTC regulations or statutes?Yes
- C3Found you or an advisory affiliate caused an investment-related business to have its authorization to do business denied, suspended, revoked, or restricted?No
- C4Entered an order against you or an advisory affiliate in connection with investment-related activity?Yes
- C5Imposed a civil money penalty on you or an advisory affiliate, or ordered you or an advisory affiliate to cease and desist from any activity?Yes
DOther regulatory actions3 Yes2 No
Has any other federal regulatory agency, state regulatory agency, or foreign financial regulatory authority ever:
- D1Found you or an advisory affiliate made a false statement or omission, or was dishonest, unfair, or unethical?Yes
- D2Found you or an advisory affiliate violated investment-related regulations or statutes?Yes
- D3Found you or an advisory affiliate caused an investment-related business to have its authorization to do business denied, suspended, revoked, or restricted?No
- D4In the past ten years, entered an order against you or an advisory affiliate in connection with investment-related activity?Yes
- D5Denied, suspended, or revoked your or an advisory affiliate’s registration or license, or otherwise prevented association with an investment-related business or restricted activities?No
ESelf-regulatory organization actions1 Yes3 No
Has a self-regulatory organization or commodities exchange ever:
- E1Found you or an advisory affiliate made a false statement or omission?No
- E2Found you or an advisory affiliate violated its rules, other than a violation designated as a minor rule violation under an SEC-approved plan?Yes
- E3Found you or an advisory affiliate caused an investment-related business to have its authorization to do business denied, suspended, revoked, or restricted?No
- E4Disciplined you or an advisory affiliate by expulsion, suspension, barring association with other members, or otherwise restricting activities?No
FProfessional authorizations1 No
- FHas an authorization to act as an attorney, accountant, or federal contractor granted to you or an advisory affiliate ever been revoked or suspended?No
GPending regulatory proceedings1 Yes
- GAre you or any advisory affiliate now the subject of a regulatory proceeding that could result in a “Yes” answer to any part of C, D, or E?Yes
HCivil judicial actions and proceedings4 No
(1) Court actions
Has a domestic or foreign court:
- H(1)(a)In the past ten years, enjoined you or an advisory affiliate in connection with investment-related activity?No
- H(1)(b)Found that you or an advisory affiliate violated investment-related statutes or regulations?No
- H(1)(c)Dismissed, pursuant to a settlement agreement, an investment-related civil action brought against you or an advisory affiliate by a state or foreign financial regulatory authority?No
(2) Pending civil proceedings
- H(2)Are you or any advisory affiliate now the subject of a civil proceeding that could result in a “Yes” answer to any part of H(1)?No
Additional DRP filings 14 source blocks
Verbatim excerpts from supporting DRP filings, which may concern the firm or advisory affiliates. Amounts retain their filed labels; no total or attribution is inferred.
criminal · block 1PDF pages 54–55
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.A. or 11.B. of Form ADV. Criminal Check item(s) being responded to: 11.A(1) 11.A(2) 11.B(1) 11.B(2) Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. Multiple counts of the same charge arising out of the same event(s) should be reported on the same DRP. Unrelated criminal actions, including separate cases arising out of the same event, must be reported on separate DRPs. Use this DRP to report all charges arising out of the same event. One event may result in more than one affirmative answer to the items listed above. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE CRD Number: 5129975 This advisory affiliate is a Firm an Individual Registered: Yes No Name: YANOTCHKO, DANIEL, JOHNATHAN (For individuals, Last, First, Middle) This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. If charge(s) were brought against an organization over which you or an advisory affiliate exercise(d) control: Enter organization name, whether or not the organization was an investment-related business and your or the advisory affiliate's position, title, or relationship. 2. Formal Charge(s) were brought in: (include name of Federal, Military, State or Foreign Court, Location of Court - City or County and State or Country, Docket/Case number). 3. Event Disclosure Detail (Use this for both organizational and individual charges.) A. Date First Charged (MM/DD/YYYY): Exact Explanation If not exact, provide explanation: B. Event Disclosure Detail (include Charge(s)/Charge Description(s), and for each charge provide: (1) number of counts, (2) felony or misdemeanor, (3) plea for each charge, and (4) product type if charge is investment-related). C. Did any of the Charge(s) within the Event involve a felony? Yes No D. Current status of the Event? Pending On Appeal Final E. Event Status Date (complete unless status is Pending) (MM/DD/YYYY): Exact Explanation If not exact, provide explanation: 4. Disposition Disclosure Detail: Include for each charge (a) Disposition Type (e.g., convicted, acquitted, dismissed, pretrial, etc.), (b) Date, (c) Sentence/Penalty, (d) Duration (if sentence - suspension, probation, etc.), (e) Start Date of Penalty, (f) Penalty/Fine Amount, and (g) Date Paid. 5. Provide a brief summary of circumstances leading to the charge(s) as well as the disposition. Include the relevant dates when the conduct which was the subject of the charge(s) occurred. (Your response must fit within the space provided.)
regulatory · block 1PDF pages 56–57
- Regulator name — filed text
- THE SECURITIES AND EXCHANGE COMMISSION.
- Monetary/Fine Amount — filed text
- $ 300,000.00
- How was matter resolved — filed text
- Order
Action status / disposition — filed text
THE FIRM AGREED TO COMPLY WITH THE FOLLOWING UNDERTAKINGS: THE FIRM WILL PROVIDE A COPY OF THE ORDER TO EACH OF THE FIRM'S EXISTING ADVISORY CLIENTS WITHIN FORTY-FIVE DAYS OF THE ENTRY OF THE ORDER AND FURTHER COMPLY WITH ALL DISCLOSURE OBLIGATIONS CONCERNING THE ORDER UNDER THE ADVISERS ACT. THE FIRM WILL CERTIFY ITS COMPLIANCE WITH THE PREVIOUS UNDERTAKING NO LATER THAN SIXTY DAYS FROM THE COMPLETION OF THE UNDERTAKING.
Other filed details
Description of allegations — filed text
THE SECURITIES AND EXCHANGE COMMISSION (SEC) ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. (FIRM), IN ITS ROLE AS A REGISTERED INVESTMENT ADVISER, FAILED TO DISCLOSE TO ITS CLIENTS THE COMPENSATION IT RECEIVED THROUGH AN ARRANGEMENT WITH A THIRD PARTY BROKER-DEALER (CLEARING FIRM), AND CONFLICTS OF INTEREST ARISING FROM THAT COMPENSATION. THROUGH AN ADDENDUM TO THE FULLY- DISCLOSED CLEARING AGREEMENT BETWEEN CLEARING FIRM AND THE FIRM, CLEARING FIRM SHARED WITH THE FIRM CERTAIN REVENUES IT RECEIVED FROM THE MUTUAL FUNDS IN CLEARING FIRM'S NO-TRANSACTION-FEE MUTUAL FUND PROGRAM (NTF PROGRAM). IN A SEPARATE AGREEMENT, CLEARING FIRM AGREED TO PAY THE FIRM A CERTAIN PERCENTAGE OF SERVICE FEES THAT CLEARING FIRM RECEIVED FROM CERTAIN MUTUAL FUNDS IN THE NTF PROGRAM IN EXCHANGE FOR THE FIRM PERFORMING CERTAIN ADMINISTRATIVE SERVICES ON CLEARING FIRM'S BEHALF. THE SEC ALLEGED THAT THESE PAYMENTS CREATED A CONFLICT OF INTEREST IN THAT THEY PROVIDED A FINANCIAL INCENTIVE FOR THE FIRM TO FAVOR THE MUTUAL FUNDS IN THE NTF PROGRAM OVER OTHER INVESTMENTS WHEN GIVING INVESTMENT ADVICE TO ITS ADVISORY CLIENTS. THE SEC ALLEGED THAT THE FIRM DID NOT DISCLOSE THE AFOREMENTIONED ARRANGEMENTS OR THE RESULTING CONFLICT OF INTEREST TO ITS ADVISORY CLIENTS, RESULTING IN A VIOLATION OF SECTIONS 206(2) AND 207 OF THE ADVISERS ACT. THE SEC ALSO ALLEGED THAT BY NOT ADEQUATELY IMPLEMENTING POLICIES AND PROCEDURES REASONABLY DESIGNED TO ENSURE PROPER DISCLOSURE OF CONFLICTS OF INTERESTS, THE FIRM VIOLATED SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER.
Sanction detail — filed text
THE FIRM AGREED TO A CENSURE AND DISGORGEMENT OF $2,621,324 AND PREJUDGMENT INTEREST OF $174,629.78 AND A CIVIL MONETARY PENALTY OF $300,000.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) THE SECURITIES AND EXCHANGE COMMISSION. 2. Principal Sanction: Cease and Desist Other Sanctions: CENSURE,DISGORGEMENT, AND A CIVIL PENALTY. 3. Date Initiated (MM/DD/YYYY): 03/08/2017 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: 3-17870 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: Mutual Fund(s) Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE SECURITIES AND EXCHANGE COMMISSION (SEC) ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. (FIRM), IN ITS ROLE AS A REGISTERED INVESTMENT ADVISER, FAILED TO DISCLOSE TO ITS CLIENTS THE COMPENSATION IT RECEIVED THROUGH AN ARRANGEMENT WITH A THIRD PARTY BROKER-DEALER (CLEARING FIRM), AND CONFLICTS OF INTEREST ARISING FROM THAT COMPENSATION. THROUGH AN ADDENDUM TO THE FULLY- DISCLOSED CLEARING AGREEMENT BETWEEN CLEARING FIRM AND THE FIRM, CLEARING FIRM SHARED WITH THE FIRM CERTAIN REVENUES IT RECEIVED FROM THE MUTUAL FUNDS IN CLEARING FIRM'S NO-TRANSACTION-FEE MUTUAL FUND PROGRAM (NTF PROGRAM). IN A SEPARATE AGREEMENT, CLEARING FIRM AGREED TO PAY THE FIRM A CERTAIN PERCENTAGE OF SERVICE FEES THAT CLEARING FIRM RECEIVED FROM CERTAIN MUTUAL FUNDS IN THE NTF PROGRAM IN EXCHANGE FOR THE FIRM PERFORMING CERTAIN ADMINISTRATIVE SERVICES ON CLEARING FIRM'S BEHALF. THE SEC ALLEGED THAT THESE PAYMENTS CREATED A CONFLICT OF INTEREST IN THAT THEY PROVIDED A FINANCIAL INCENTIVE FOR THE FIRM TO FAVOR THE MUTUAL FUNDS IN THE NTF PROGRAM OVER OTHER INVESTMENTS WHEN GIVING INVESTMENT ADVICE TO ITS ADVISORY CLIENTS. THE SEC ALLEGED THAT THE FIRM DID NOT DISCLOSE THE AFOREMENTIONED ARRANGEMENTS OR THE RESULTING CONFLICT OF INTEREST TO ITS ADVISORY CLIENTS, RESULTING IN A VIOLATION OF SECTIONS 206(2) AND 207 OF THE ADVISERS ACT. THE SEC ALSO ALLEGED THAT BY NOT ADEQUATELY IMPLEMENTING POLICIES AND PROCEDURES REASONABLY DESIGNED TO ENSURE PROPER DISCLOSURE OF CONFLICTS OF INTERESTS, THE FIRM VIOLATED SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER. 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Order 11. Resolution Date (MM/DD/YYYY): 03/08/2017 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ 300,000.00 Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: THE FIRM FURTHER AGREED TO COMPLY WITH THE FOLLOWING UNDERTAKINGS: THE FIRM WILL PROVIDE A COPY OF THE ORDER TO EACH OF THE FIRM'S EXISTING ADVISORY CLIENTS WITHIN FORTY-FIVE DAYS OF THE ENTRY OF THE ORDER AND FURTHER COMPLY WITH ALL DISCLOSURE OBLIGATIONS CONCERNING THE ORDER UNDER THE ADVISERS ACT. THE FIRM WILL CERTIFY ITS COMPLIANCE WITH THE PREVIOUS UNDERTAKING NO LATER THAN SIXTY DAYS FROM THE COMPLETION OF THE UNDERTAKING. Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: THE FIRM AGREED TO A CENSURE AND DISGORGEMENT OF $2,621,324 AND PREJUDGMENT INTEREST OF $174,629.78 AND A CIVIL MONETARY PENALTY OF $300,000. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided). THE FIRM AGREED TO COMPLY WITH THE FOLLOWING UNDERTAKINGS: THE FIRM WILL PROVIDE A COPY OF THE ORDER TO EACH OF THE FIRM'S EXISTING ADVISORY CLIENTS WITHIN FORTY-FIVE DAYS OF THE ENTRY OF THE ORDER AND FURTHER COMPLY WITH ALL DISCLOSURE OBLIGATIONS CONCERNING THE ORDER UNDER THE ADVISERS ACT. THE FIRM WILL CERTIFY ITS COMPLIANCE WITH THE PREVIOUS UNDERTAKING NO LATER THAN SIXTY DAYS FROM THE COMPLETION OF THE UNDERTAKING.
regulatory · block 2PDF pages 58–60
- Regulator name — filed text
- CONNECTICUT
- Monetary/Fine Amount — filed text
- $ 100,000.00
- How was matter resolved — filed text
- Consent
Action status / disposition — filed text
ON APRIL 23, 2018 THE CONNECTICUT DEPARTMENT OF BANKING, THROUGH THE SECURITIES AND BUSINESS INVESTMENTS DIVISION (THE "DIVISION"), ENTERED AN ORDER (THE "ORDER") TO CEASE AND DESIST, MAKE RESTITUTION, AND A NOTICE OF INTENT TO FINE AGAINST VOYA FINANCIAL ADVISORS, INC. ("VFA" OR THE "FIRM"). THE ORDER STATES THAT THE FIRM VIOLATED SECTION 36B-31-6F OF THE REGULATIONS UNDER THE CONNECTICUT UNIFORM SECURITIES ACT BY FAILING TO ESTABLISH, ENFORCE AND MAINTAIN A SYSTEM FOR SUPERVISING THE ACTIVITIES OF ITS AGENTS THAT WAS REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS AND REGULATIONS. ON MAY 3, 2018, THE FIRM REQUESTED A HEARING ON THE MATTERS ALLEGED IN THE ORDER. ON NOVEMBER 13, 2018 THE DIVISION, ENTERED AN AMENDED ORDER (THE "AMENDED ORDER") TO CEASE AND DESIST, MAKE RESTITUTION, AND A NOTICE OF INTENT TO FINE AGAINST VOYA FINANCIAL ADVISORS, INC. THE LEGAL ALLEGATIONS IN THE AMENDED ORDER REMAIN THE SAME AS THOSE IN THE ORIGINAL ORDER. THE FIRM ACKNOWLEDGED THE DIVISION'S ALLEGATIONS AGAINST IT AND, WITHOUT ADMITTING OR DENYING THEM, ENTERED INTO A CONSENT ORDER. THE FIRM AGREED TO THE SANCTIONS DESCRIBED IN SECTION 12(C), AND TO IMMEDIATELY NOTIFY THE DIVISION IF ANY INVESTOR CANNOT BE LOCATED AFTER A DILIGENT SEARCH, FAILS TO PROVIDE SUFFICIENT DISBURSEMENT INSTRUCTIONS, FAILS TO TIMELY RESPOND TO THE NOTICE, OR UNEQUIVOCALLY DENIES DISBURSEMENT IN WRITING. THE ORDER WAS ENTERED ON MARCH 11, 2019.
Other filed details
Description of allegations — filed text
THE SECURITIES AND BUSINESS INVESTMENTS DIVISION OF THE CONNECTICUT DEPARTMENT OF BANKING ("DIVISION") ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. ("FIRM") VIOLATED SECTION 36B-31-6(F) OF THE REGULATIONS OF CONNECTICUT STATE AGENCIES (THE "REGULATIONS") BY FAILING TO ENFORCE AND MAINTAIN A SYSTEM FOR SUPERVISING THE ACTIVITIES OF ITS AGENTS, INVESTMENT ADVISER AGENTS AND CONNECTICUT OFFICE OPERATIONS THAT WAS REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS AND REGULATIONS. THE ALLEGATIONS PERTAIN TO FORMER FIRM AGENT DALE QUESNEL'S ("QUESNEL") SALE OF UNREGISTERED SECURITIES TO INVESTORS IN CONNECTICUT AND OTHER STATES ("INVESTORS"). THE DIVISION FOUND, THROUGH A MARCH 3, 2016 ORDER AGAINST QUESNEL, THAT QUESNEL PARTICIPATED IN PRIVATE SECURITIES TRANSACTIONS WITHOUT PROVIDING PRIOR WRITTEN NOTICE TO THE FIRM.
Sanction detail — filed text
1) AN ADMINISTRATIVE FINE, PAYABLE TO THE TREASURER OF THE STATE OF CONNECTICUT, OF $100,000; 2) THE ESTABLISHMENT AND ADMINISTRATION OF A FUND (THE "FUND") TO REIMBURSE INVESTORS IN THE AMOUNT OF $915,000, AND THE USE OF ALL REASONABLE EFFORTS TO CONFIRM THAT THE CONTACT AND ADDRESS INFORMATION FOR THE INVESTORS IS UP TO DATE; 3) NO LATER THAN THIRTY DAYS FROM THE ORDER, DISTRIBUTION OF A COPY OF THE ORDER AND A WRITTEN NOTICE, PREAPPROVED BY THE DIVISION DIRECTOR, TO INVESTORS STATING THAT THE INVESTOR OR ITS ESTATE IS ENTITLED TO A PAYMENT FROM THE FUND IF HE OR SHE RESPONDS TO THE FIRM WITHIN SIXTY DAYS AND PROVIDES DISTRIBUTION INSTRUCTIONS SUFFICIENT TO MAKE A PAYMENT, AND 4) NO LATER THAN NINETY DAYS FROM THE ORDER, DISBURSEMENT OF MONEY OWED FROM THE FUND, ACCORDING TO THE AMOUNTS IDENTIFIED BY THE DIVISION, TO THE INVESTORS THAT REPLIED, AND PROVIDE PROOF OF DISBURSEMENT TO THE DIVISION VIA A COPY OF THE CHECK OR WIRE TRANSFER TO EACH INVESTOR.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS
This Disclosure Reporting Page (DRP ADV) is an
INITIAL OR
AMENDED response used to report details for affirmative responses to Items 11.C., 11.D.,
11.E., 11.F. or 11.G. of Form ADV.
Regulatory Action
Check item(s) being responded to:
11.C(1)
11.C(2)
11.C(3)
11.C(4)
11.C(5)
11.D(1)
11.D(2)
11.D(3)
11.D(4)
11.D(5)
11.E(1)
11.E(2)
11.E(3)
11.E(4)
11.F.
11.G.
Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File
with a completed Execution Page.
One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the
same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP.
PART I
A. The person(s) or entity(ies) for whom this DRP is being filed is (are):
You (the advisory firm)
You and one or more of your advisory affiliates
One or more of your advisory affiliates
If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name).
If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box.
ADV DRP - ADVISORY AFFILIATE
No Information Filed
This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser.
This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is
registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the
adviser's or advisory affiliate's favor.
If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item
11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any
event listed in Item 11 that occurred more than ten years ago.
This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the
circumstances:
B.
If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to
the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided.
Yes
No
NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records.
PART II
1. Regulatory Action initiated by:
SEC
Other Federal
State
SRO
Foreign
(Full name of regulator, foreign financial regulatory authority, federal, state, or SRO)
CONNECTICUT
2.
Principal Sanction:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanctions:
ORDER TO CEASE AND DESIST, ORDER TO MAKE RESTITUTION, NOTICE OF INTENT TO FINE AND NOTICE OF RIGHT TO HEARING ISSUED APRIL 23, 2018
3.
Date Initiated (MM/DD/YYYY):
04/23/2018
Exact
Explanation
If not exact, provide explanation:
4.
Docket/Case Number:
CRF-18-8430-S
5.
Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable):
VOYA FINANCIAL ADVISORS, INC.
6.
Principal Product Type:
No Product
Other Product Types:
7.
Describe the allegations related to this regulatory action (your response must fit within the space provided):
THE SECURITIES AND BUSINESS INVESTMENTS DIVISION OF THE CONNECTICUT DEPARTMENT OF BANKING ("DIVISION") ALLEGED THAT VOYA
FINANCIAL ADVISORS, INC. ("FIRM") VIOLATED SECTION 36B-31-6(F) OF THE REGULATIONS OF CONNECTICUT STATE AGENCIES (THE "REGULATIONS")
BY FAILING TO ENFORCE AND MAINTAIN A SYSTEM FOR SUPERVISING THE ACTIVITIES OF ITS AGENTS, INVESTMENT ADVISER AGENTS AND
CONNECTICUT OFFICE OPERATIONS THAT WAS REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS AND
REGULATIONS. THE ALLEGATIONS PERTAIN TO FORMER FIRM AGENT DALE QUESNEL'S ("QUESNEL") SALE OF UNREGISTERED SECURITIES TO
INVESTORS IN CONNECTICUT AND OTHER STATES ("INVESTORS"). THE DIVISION FOUND, THROUGH A MARCH 3, 2016 ORDER AGAINST QUESNEL, THAT
QUESNEL PARTICIPATED IN PRIVATE SECURITIES TRANSACTIONS WITHOUT PROVIDING PRIOR WRITTEN NOTICE TO THE FIRM.
8.
Current Status?
Pending
On Appeal
Final
9.
If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed:
If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only.
10. How was matter resolved:
Consent
11. Resolution Date (MM/DD/YYYY):
03/11/2019
Exact
Explanation
If not exact, provide explanation:
12. Resolution Detail:
A. Were any of the following Sanctions Ordered (check all appropriate items)?
Monetary/Fine Amount: $ 100,000.00
Revocation/Expulsion/Denial
Disgorgement/Restitution
Censure
Cease and Desist/Injunction
Bar
Suspension
B.
Other Sanctions Ordered:
Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal,
Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to
requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution,
disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion
of penalty was waived:
1) AN ADMINISTRATIVE FINE, PAYABLE TO THE TREASURER OF THE STATE OF CONNECTICUT, OF $100,000; 2) THE ESTABLISHMENT AND
ADMINISTRATION OF A FUND (THE "FUND") TO REIMBURSE INVESTORS IN THE AMOUNT OF $915,000, AND THE USE OF ALL REASONABLE
EFFORTS TO CONFIRM THAT THE CONTACT AND ADDRESS INFORMATION FOR THE INVESTORS IS UP TO DATE; 3) NO LATER THAN THIRTY DAYS
FROM THE ORDER, DISTRIBUTION OF A COPY OF THE ORDER AND A WRITTEN NOTICE, PREAPPROVED BY THE DIVISION DIRECTOR, TO INVESTORS
STATING THAT THE INVESTOR OR ITS ESTATE IS ENTITLED TO A PAYMENT FROM THE FUND IF HE OR SHE RESPONDS TO THE FIRM WITHIN SIXTY
DAYS AND PROVIDES DISTRIBUTION INSTRUCTIONS SUFFICIENT TO MAKE A PAYMENT, AND 4) NO LATER THAN NINETY DAYS FROM THE ORDER,
DISBURSEMENT OF MONEY OWED FROM THE FUND, ACCORDING TO THE AMOUNTS IDENTIFIED BY THE DIVISION, TO THE INVESTORS THAT
REPLIED, AND PROVIDE PROOF OF DISBURSEMENT TO THE DIVISION VIA A COPY OF THE CHECK OR WIRE TRANSFER TO EACH INVESTOR.
13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response
must fit within the space provided).
ON APRIL 23, 2018 THE CONNECTICUT DEPARTMENT OF BANKING, THROUGH THE SECURITIES AND BUSINESS INVESTMENTS DIVISION (THE
"DIVISION"), ENTERED AN ORDER (THE "ORDER") TO CEASE AND DESIST, MAKE RESTITUTION, AND A NOTICE OF INTENT TO FINE AGAINST VOYA
FINANCIAL ADVISORS, INC. ("VFA" OR THE "FIRM"). THE ORDER STATES THAT THE FIRM VIOLATED SECTION 36B-31-6F OF THE REGULATIONS UNDER
THE CONNECTICUT UNIFORM SECURITIES ACT BY FAILING TO ESTABLISH, ENFORCE AND MAINTAIN A SYSTEM FOR SUPERVISING THE ACTIVITIES OF ITS
AGENTS THAT WAS REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS AND REGULATIONS. ON MAY 3, 2018, THE
FIRM REQUESTED A HEARING ON THE MATTERS ALLEGED IN THE ORDER. ON NOVEMBER 13, 2018 THE DIVISION, ENTERED AN AMENDED ORDER (THE
"AMENDED ORDER") TO CEASE AND DESIST, MAKE RESTITUTION, AND A NOTICE OF INTENT TO FINE AGAINST VOYA FINANCIAL ADVISORS, INC. THE
LEGAL ALLEGATIONS IN THE AMENDED ORDER REMAIN THE SAME AS THOSE IN THE ORIGINAL ORDER. THE FIRM ACKNOWLEDGED THE DIVISION'S
ALLEGATIONS AGAINST IT AND, WITHOUT ADMITTING OR DENYING THEM, ENTERED INTO A CONSENT ORDER. THE FIRM AGREED TO THE SANCTIONS
DESCRIBED IN SECTION 12(C), AND TO IMMEDIATELY NOTIFY THE DIVISION IF ANY INVESTOR CANNOT BE LOCATED AFTER A DILIGENT SEARCH, FAILS
TO PROVIDE SUFFICIENT DISBURSEMENT INSTRUCTIONS, FAILS TO TIMELY RESPOND TO THE NOTICE, OR UNEQUIVOCALLY DENIES DISBURSEMENT IN
WRITING. THE ORDER WAS ENTERED ON MARCH 11, 2019.regulatory · block 3PDF pages 60–62
- Regulator name — filed text
- SECURITIES AND EXCHANGE COMMISSION
- Monetary/Fine Amount — filed text
- $ 1,000,000.00
- How was matter resolved — filed text
- Order
Action status / disposition — filed text
THE FIRM CONSENTED TO THE ENTRY OF AN ORDER INSTITUTING ADMINISTRATIVE AND CEASE AND DESIST PROCEEDINGS ("ORDER"), A CENSURE, AND CIVIL MONEY PENALTY IN THE AMOUNT OF $1,000,000. THE FIRM AGREED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS OR FUTURE VIOLATIONS OF RULE 30(A) OR REGULATION S-P AND OF RULE 201 OF REGULATION S-ID. THE FIRM FURTHER AGREED TO COMPLY WITH THE FOLLOWING UNDERTAKINGS. THE FIRM SHALL RETAIN AN INDEPENDENT COMPLIANCE CONSULTANT ("CONSULTANT") TO CONDUCT A COMPREHENSIVE REVIEW OF THE FIRM'S POLICIES AND PROCEDURES FOR COMPLIANCE WITH REGULATION S-P AND REGULATION S-ID. THE FIRM WILL FULLY COOPERATE WITH THE CONSULTANT, AND REQUIRE THE CONSULTANT SUBMIT A WRITTEN INITIAL REPORT TO THE FIRM AND THE SEC WITHIN NINETY DAYS OF THIS ORDER. THE FIRM AGREES TO ADOPT THE RECOMMENDATIONS FROM THE INITIAL REPORT, SUBJECT TO ADOPTION OF ALTERNATIVE POLICIES, PROCEDURES, OR SYSTEMS, WITHIN 90 DAYS OF ITS ISSUANCE. THE CONSULTANT SHALL COMPLETE ITS REVIEW AND ISSUE A WRITTEN FINAL REPORT WITHIN NINE MONTHS OF THE ORDER, AND THE FIRM SHALL TAKE NECESSARY AND APPROPRIATE STEPS TO IMPLEMENT ALL RECOMMENDATIONS AND ALTERNATIVE POLICIES, PROCEDURES OR SYSTEMS. THE FIRM WILL CERTIFY ITS COMPLIANCE WITH EACH OF THE PREVIOUS UNDERTAKINGS. THE ORDER WAS EXECUTED ON SEPTEMBER 26, 2018.
Other filed details
Description of allegations — filed text
SEC ADMIN RELEASE 34-84288; IA RELEASE 40-5048, SEPTEMBER 26, 2018: THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE INSTITUTED AGAINST VOYA FINANCIAL ADVISORS, INC. ("VFA" OR "RESPONDENT"). THE COMMISSION FINDS THAT THESE PROCEEDINGS ARISE OUT OF VFA'S FAILURE TO ADOPT WRITTEN POLICIES AND PROCEDURES REASONABLY DESIGNED TO PROTECT CUSTOMER RECORDS AND INFORMATION, IN VIOLATION OF RULE 30(A) OF REGULATION S-P (THE "SAFEGUARDS RULE"), AND VFA'S FAILURE TO DEVELOP AND IMPLEMENT A WRITTEN IDENTITY THEFT PREVENTION PROGRAM AS REQUIRED BY RULE 201 OF REGULATION S-ID (THE "IDENTITY THEFT RED FLAGS RULE"). FROM AT LEAST 2013 THROUGH OCTOBER 2017 (THE "RELEVANT PERIOD"), VFA GAVE ITS INDEPENDENT CONTRACTOR REPRESENTATIVES ("CONTRACTOR REPRESENTATIVES") ACCESS TO ITS BROKERAGE CUSTOMER AND ADVISORY CLIENT (HEREINAFTER, "CUSTOMER") INFORMATION THROUGH A PROPRIETARY WEB PORTAL. THROUGH THE PORTAL, THE CONTRACTOR REPRESENTATIVES ACCESSED THE PERSONALLY IDENTIFIABLE INFORMATION ("PII") OF VFA CUSTOMERS AND MANAGED THE CUSTOMERS' BROKERAGE ACCOUNTS. THE PORTAL WAS SERVICED AND MAINTAINED BY VFA'S PARENT COMPANY, VOYA FINANCIAL, INC. ("VOYA"). OVER SIX DAYS IN APRIL 2016, ONE OR MORE PERSONS IMPERSONATING VFA CONTRACTOR REPRESENTATIVES CALLED VFA'S TECHNICAL SUPPORT LINE AND REQUESTED A RESET OF THREE REPRESENTATIVES' PASSWORDS FOR THE WEB PORTAL USED TO ACCESS VFA CUSTOMER INFORMATION, IN TWO INSTANCES USING PHONE NUMBERS VOYA HAD PREVIOUSLY IDENTIFIED AS ASSOCIATED WITH PRIOR FRAUDULENT ACTIVITY. ALTHOUGH VFA TOOK CERTAIN STEPS TO RESPOND TO THE INTRUSION, THOSE STEPS DID NOT PREVENT THE INTRUDERS FROM OBTAINING PASSWORDS AND GAINING ACCESS TO VFA'S PORTAL BY IMPERSONATING TWO ADDITIONAL REPRESENTATIVES OVER THE NEXT SEVERAL DAYS. NOR DID VFA TERMINATE THE INTRUDERS' ACCESS TO THE THREE REPRESENTATIVES' ACCOUNTS DUE TO DEFICIENT CYBERSECURITY CONTROLS AND AN ERRONEOUS UNDERSTANDING OF THE OPERATION OF THE PORTAL. THE INTRUDERS USED THE VFA CONTRACTOR REPRESENTATIVES' USERNAMES AND PASSWORDS TO LOG IN TO THE PORTAL AND GAIN ACCESS TO PII FOR AT LEAST 5,600 OF VFA'S CUSTOMERS, AND SUBSEQUENTLY TO OBTAIN ACCOUNT DOCUMENTS CONTAINING PII OF AT LEAST ONE VOYA CUSTOMER. THE INTRUDERS ALSO USED CUSTOMER INFORMATION TO CREATE NEW VOYA.COM CUSTOMER PROFILES, WHICH GAVE THEM ACCESS TO PII AND ACCOUNT INFORMATION OF TWO ADDITIONAL CUSTOMERS. THERE HAVE BEEN NO KNOWN UNAUTHORIZED TRANSFERS OF FUNDS OR SECURITIES FROM VFA CUSTOMER ACCOUNTS AS A RESULT OF THE ATTACK. VFA VIOLATED THE SAFEGUARDS RULE BECAUSE ITS POLICIES AND PROCEDURES TO PROTECT CUSTOMER INFORMATION AND TO PREVENT AND RESPOND TO CYBERSECURITY INCIDENTS WERE NOT REASONABLY DESIGNED TO MEET THESE OBJECTIVES. AMONG OTHER THINGS, VFA'S POLICIES AND PROCEDURES WITH RESPECT TO RESETTING VFA CONTRACTOR REPRESENTATIVES' PASSWORDS, TERMINATING WEB SESSIONS IN ITS PROPRIETARY GATEWAY SYSTEM FOR VFA CONTRACTOR REPRESENTATIVES, IDENTIFYING HIGHER-RISK REPRESENTATIVES AND CUSTOMER ACCOUNTS FOR ADDITIONAL SECURITY MEASURES, AND CREATION AND ALTERATION OF VOYA.COM CUSTOMER PROFILES, WERE NOT REASONABLY DESIGNED. IN ADDITION, A NUMBER OF VFA'S CYBERSECURITY POLICIES AND PROCEDURES WERE NOT REASONABLY DESIGNED TO BE APPLIED TO ITS CONTRACTOR REPRESENTATIVES. ALTHOUGH VFA ADOPTED A WRITTEN IDENTITY THEFT PREVENTION PROGRAM IN 2009, VFA VIOLATED THE IDENTITY THEFT RED FLAGS RULE BECAUSE IT DID NOT REVIEW AND UPDATE THE IDENTITY THEFT PREVENTION PROGRAM IN RESPONSE TO CHANGES IN RISKS TO ITS CUSTOMERS OR PROVIDE ADEQUATE TRAINING TO ITS EMPLOYEES. IN ADDITION, THE IDENTITY THEFT PREVENTION PROGRAM DID NOT INCLUDE REASONABLE POLICIES AND PROCEDURES TO RESPOND TO IDENTITY THEFT RED FLAGS, SUCH AS THOSE THAT WERE DETECTED BY VFA DURING THE APRIL 2016 INTRUSION.
Sanction detail — filed text
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, THE FIRM WAS CENSURED, FINED $1,000,000 , ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF RULE 30(A) OF REGULATION SP (17 C.F.R.§248.30(A))AND OF RULE 201 OF REGULATION SID (17 C.F.R. § 248.201).
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS
This Disclosure Reporting Page (DRP ADV) is an
INITIAL OR
AMENDED response used to report details for affirmative responses to Items 11.C., 11.D.,
11.E., 11.F. or 11.G. of Form ADV.
Regulatory Action
Check item(s) being responded to:
11.C(1)
11.C(2)
11.C(3)
11.C(4)
11.C(5)
11.D(1)
11.D(2)
11.D(3)
11.D(4)
11.D(5)
11.E(1)
11.E(2)
11.E(3)
11.E(4)
11.F.
11.G.
Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File
with a completed Execution Page.
One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the
same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP.
PART I
A. The person(s) or entity(ies) for whom this DRP is being filed is (are):
You (the advisory firm)
You and one or more of your advisory affiliates
One or more of your advisory affiliates
If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name).
If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box.
ADV DRP - ADVISORY AFFILIATE
No Information Filed
This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser.
This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is
registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the
adviser's or advisory affiliate's favor.
If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item
11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any
event listed in Item 11 that occurred more than ten years ago.
This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the
circumstances:
B.
If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to
the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided.
Yes
No
NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records.
PART II
1. Regulatory Action initiated by:
SEC
Other Federal
State
SRO
Foreign
(Full name of regulator, foreign financial regulatory authority, federal, state, or SRO)
SECURITIES AND EXCHANGE COMMISSION
2.
Principal Sanction:
Cease and Desist
Other Sanctions:
3.
Date Initiated (MM/DD/YYYY):
09/26/2018
Exact
Explanation
If not exact, provide explanation:
4.
Docket/Case Number:
3-18840
5.
Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable):
6.
Principal Product Type:
No Product
Other Product Types:
7.
Describe the allegations related to this regulatory action (your response must fit within the space provided):
SEC ADMIN RELEASE 34-84288; IA RELEASE 40-5048, SEPTEMBER 26, 2018: THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION")
DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE INSTITUTED AGAINST
VOYA FINANCIAL ADVISORS, INC. ("VFA" OR "RESPONDENT"). THE COMMISSION FINDS THAT THESE PROCEEDINGS ARISE OUT OF VFA'S FAILURE TO
ADOPT WRITTEN POLICIES AND PROCEDURES REASONABLY DESIGNED TO PROTECT CUSTOMER RECORDS AND INFORMATION, IN VIOLATION OF RULE
30(A) OF REGULATION S-P (THE "SAFEGUARDS RULE"), AND VFA'S FAILURE TO DEVELOP AND IMPLEMENT A WRITTEN IDENTITY THEFT PREVENTION
PROGRAM AS REQUIRED BY RULE 201 OF REGULATION S-ID (THE "IDENTITY THEFT RED FLAGS RULE"). FROM AT LEAST 2013 THROUGH OCTOBER 2017
(THE "RELEVANT PERIOD"), VFA GAVE ITS INDEPENDENT CONTRACTOR REPRESENTATIVES ("CONTRACTOR REPRESENTATIVES") ACCESS TO ITS
BROKERAGE CUSTOMER AND ADVISORY CLIENT (HEREINAFTER, "CUSTOMER") INFORMATION THROUGH A PROPRIETARY WEB PORTAL. THROUGH THE
PORTAL, THE CONTRACTOR REPRESENTATIVES ACCESSED THE PERSONALLY IDENTIFIABLE INFORMATION ("PII") OF VFA CUSTOMERS AND MANAGED
THE CUSTOMERS' BROKERAGE ACCOUNTS. THE PORTAL WAS SERVICED AND MAINTAINED BY VFA'S PARENT COMPANY, VOYA FINANCIAL, INC. ("VOYA").
OVER SIX DAYS IN APRIL 2016, ONE OR MORE PERSONS IMPERSONATING VFA CONTRACTOR REPRESENTATIVES CALLED VFA'S TECHNICAL SUPPORT
LINE AND REQUESTED A RESET OF THREE REPRESENTATIVES' PASSWORDS FOR THE WEB PORTAL USED TO ACCESS VFA CUSTOMER INFORMATION, IN
TWO INSTANCES USING PHONE NUMBERS VOYA HAD PREVIOUSLY IDENTIFIED AS ASSOCIATED WITH PRIOR FRAUDULENT ACTIVITY. ALTHOUGH VFA
TOOK CERTAIN STEPS TO RESPOND TO THE INTRUSION, THOSE STEPS DID NOT PREVENT THE INTRUDERS FROM OBTAINING PASSWORDS AND GAINING
ACCESS TO VFA'S PORTAL BY IMPERSONATING TWO ADDITIONAL REPRESENTATIVES OVER THE NEXT SEVERAL DAYS. NOR DID VFA TERMINATE THE
INTRUDERS' ACCESS TO THE THREE REPRESENTATIVES' ACCOUNTS DUE TO DEFICIENT CYBERSECURITY CONTROLS AND AN ERRONEOUS
UNDERSTANDING OF THE OPERATION OF THE PORTAL. THE INTRUDERS USED THE VFA CONTRACTOR REPRESENTATIVES' USERNAMES AND PASSWORDS
TO LOG IN TO THE PORTAL AND GAIN ACCESS TO PII FOR AT LEAST 5,600 OF VFA'S CUSTOMERS, AND SUBSEQUENTLY TO OBTAIN ACCOUNT
DOCUMENTS CONTAINING PII OF AT LEAST ONE VOYA CUSTOMER. THE INTRUDERS ALSO USED CUSTOMER INFORMATION TO CREATE NEW VOYA.COM
CUSTOMER PROFILES, WHICH GAVE THEM ACCESS TO PII AND ACCOUNT INFORMATION OF TWO ADDITIONAL CUSTOMERS. THERE HAVE BEEN NO
KNOWN UNAUTHORIZED TRANSFERS OF FUNDS OR SECURITIES FROM VFA CUSTOMER ACCOUNTS AS A RESULT OF THE ATTACK. VFA VIOLATED THE
SAFEGUARDS RULE BECAUSE ITS POLICIES AND PROCEDURES TO PROTECT CUSTOMER INFORMATION AND TO PREVENT AND RESPOND TO
CYBERSECURITY INCIDENTS WERE NOT REASONABLY DESIGNED TO MEET THESE OBJECTIVES. AMONG OTHER THINGS, VFA'S POLICIES AND
PROCEDURES WITH RESPECT TO RESETTING VFA CONTRACTOR REPRESENTATIVES' PASSWORDS, TERMINATING WEB SESSIONS IN ITS PROPRIETARY
GATEWAY SYSTEM FOR VFA CONTRACTOR REPRESENTATIVES, IDENTIFYING HIGHER-RISK REPRESENTATIVES AND CUSTOMER ACCOUNTS FOR
ADDITIONAL SECURITY MEASURES, AND CREATION AND ALTERATION OF VOYA.COM CUSTOMER PROFILES, WERE NOT REASONABLY DESIGNED. IN
ADDITION, A NUMBER OF VFA'S CYBERSECURITY POLICIES AND PROCEDURES WERE NOT REASONABLY DESIGNED TO BE APPLIED TO ITS CONTRACTOR
REPRESENTATIVES. ALTHOUGH VFA ADOPTED A WRITTEN IDENTITY THEFT PREVENTION PROGRAM IN 2009, VFA VIOLATED THE IDENTITY THEFT RED
FLAGS RULE BECAUSE IT DID NOT REVIEW AND UPDATE THE IDENTITY THEFT PREVENTION PROGRAM IN RESPONSE TO CHANGES IN RISKS TO ITS
CUSTOMERS OR PROVIDE ADEQUATE TRAINING TO ITS EMPLOYEES. IN ADDITION, THE IDENTITY THEFT PREVENTION PROGRAM DID NOT INCLUDE
REASONABLE POLICIES AND PROCEDURES TO RESPOND TO IDENTITY THEFT RED FLAGS, SUCH AS THOSE THAT WERE DETECTED BY VFA DURING THE
APRIL 2016 INTRUSION.
8.
Current Status?
Pending
On Appeal
Final
9.
If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed:
If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only.
10. How was matter resolved:
Order
11. Resolution Date (MM/DD/YYYY):
09/26/2018
Exact
Explanation
If not exact, provide explanation:
12. Resolution Detail:
A. Were any of the following Sanctions Ordered (check all appropriate items)?
Monetary/Fine Amount: $ 1,000,000.00
Revocation/Expulsion/Denial
Disgorgement/Restitution
Censure
Cease and Desist/Injunction
Bar
Suspension
B.
Other Sanctions Ordered:
UNDERTAKINGS
Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal,
Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to
requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution,
disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion
of penalty was waived:
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, THE FIRM WAS CENSURED, FINED $1,000,000 , ORDERED TO CEASE AND DESIST FROM
COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF RULE 30(A) OF REGULATION SP (17 C.F.R.§248.30(A))AND OF
RULE 201 OF REGULATION SID (17 C.F.R. § 248.201).
13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response
must fit within the space provided).
THE FIRM CONSENTED TO THE ENTRY OF AN ORDER INSTITUTING ADMINISTRATIVE AND CEASE AND DESIST PROCEEDINGS ("ORDER"), A CENSURE, AND
CIVIL MONEY PENALTY IN THE AMOUNT OF $1,000,000. THE FIRM AGREED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS OR
FUTURE VIOLATIONS OF RULE 30(A) OR REGULATION S-P AND OF RULE 201 OF REGULATION S-ID. THE FIRM FURTHER AGREED TO COMPLY WITH THE
FOLLOWING UNDERTAKINGS. THE FIRM SHALL RETAIN AN INDEPENDENT COMPLIANCE CONSULTANT ("CONSULTANT") TO CONDUCT A COMPREHENSIVE
REVIEW OF THE FIRM'S POLICIES AND PROCEDURES FOR COMPLIANCE WITH REGULATION S-P AND REGULATION S-ID. THE FIRM WILL FULLY
COOPERATE WITH THE CONSULTANT, AND REQUIRE THE CONSULTANT SUBMIT A WRITTEN INITIAL REPORT TO THE FIRM AND THE SEC WITHIN NINETY
DAYS OF THIS ORDER. THE FIRM AGREES TO ADOPT THE RECOMMENDATIONS FROM THE INITIAL REPORT, SUBJECT TO ADOPTION OF ALTERNATIVE
POLICIES, PROCEDURES, OR SYSTEMS, WITHIN 90 DAYS OF ITS ISSUANCE. THE CONSULTANT SHALL COMPLETE ITS REVIEW AND ISSUE A WRITTEN
FINAL REPORT WITHIN NINE MONTHS OF THE ORDER, AND THE FIRM SHALL TAKE NECESSARY AND APPROPRIATE STEPS TO IMPLEMENT ALL
RECOMMENDATIONS AND ALTERNATIVE POLICIES, PROCEDURES OR SYSTEMS. THE FIRM WILL CERTIFY ITS COMPLIANCE WITH EACH OF THE PREVIOUS
UNDERTAKINGS. THE ORDER WAS EXECUTED ON SEPTEMBER 26, 2018.regulatory · block 4PDF pages 62–64
- Regulator name — filed text
- THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
- How was matter resolved — filed text
- Acceptance, Waiver & Consent(AWC)
Action status / disposition — filed text
WITHOUT ADMITTING OR DENYING THESE FINDINGS, THE FIRM ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) WITH FINRA. THE FIRM FURTHER AGREED TO PROVIDE FINRA WITH I) A SCHEDULE OF ELIGIBLE CUSTOMERS IDENTIFIED FOR REMEDIATION, AND A DETAILED PLAN TO REMEDIATE ELIGIBLE CUSTOMERS BASED ON SPECIFIC DETAILS WITHIN 60 DAYS OF THE AWC'S ACCEPTANCE, AND II) A SATISFACTORY PROOF OF PAYMENT OF RESTITUTION TO ELIGIBLE CUSTOMERS BY A REGISTERED PRINCIPAL OF THE FIRM NO LATER THAN 180 DAYS FROM THE AWC'S ACCEPTANCE. THE FIRM ESTIMATES THAT ELIGIBLE CUSTOMERS WERE OVERCHARGED BY $125,982. FINRA ACCEPTED THE AWC ON 4/23/2019.
Other filed details
Description of allegations — filed text
THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. (FIRM) DISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLE ORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASS A SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALES CHARGE (ELIGIBLE CUSTOMERS) BETWEEN JANUARY 1, 2009 AND MAY 26, 2016. ELIGIBLE CUSTOMERS WERE INSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALES CHARGE OR CLASS B OR C SHARES WITH BACK-END SALES CHARGES AND HIGHER ONGOING FEES AND EXPENSES. FINRA ALSO ALLEGED THAT DURING THIS PERIOD THE FIRM FAILED TO REASONABLY SUPERVISE THE APPLICATION OF SALES CHARGE WAIVERS TO MUTUAL FUNDS TRANSACTIONS BY ELIGIBLE CUSTOMERS, FAILED TO MAINTAIN WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO ASSIST FINANCIAL ADVISORS IN DETERMINING WHETHER A CUSTOMER WAS ELIGIBLE FOR A SALES CHARGE WAIVER, AND FAILED TO NOTIFY AND TRAIN ITS FINANCIAL ADVISORS REGARDING THE AVAILABILITY OF MUTUAL FUND SALES CHARGE WAIVERS FOR ELIGIBLE CUSTOMERS. FINRA ALLEGED THAT THESE SUPERVISORY VIOLATIONS RESULTED IN THE FIRM VIOLATING NASD CONDUCT RULE 3010 (FOR VIOLATIONS BEFORE DECEMBER 1, 2014), AND FINRA RULE 3110 (FOR VIOLATIONS AFTER DECEMBER 1, 2014, AND FINRA RULE 2010.
Sanction detail — filed text
THE FIRM CONSENTED TO THE ENTRY OF A CENSURE, AND AGREED TO PROVIDE REMEDIATION TO ELIGIBLE CUSTOMERS WHO QUALIFIED FOR, BUT DID NOT RECEIVE, THE APPLICABLE MUTUAL FUND SALES-CHARGE WAIVER.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) 2. Principal Sanction: Restitution Other Sanctions: 3. Date Initiated (MM/DD/YYYY): 04/23/2019 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: 2016050231901 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: Mutual Fund(s) Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. (FIRM) DISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLE ORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASS A SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALES CHARGE (ELIGIBLE CUSTOMERS) BETWEEN JANUARY 1, 2009 AND MAY 26, 2016. ELIGIBLE CUSTOMERS WERE INSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALES CHARGE OR CLASS B OR C SHARES WITH BACK-END SALES CHARGES AND HIGHER ONGOING FEES AND EXPENSES. FINRA ALSO ALLEGED THAT DURING THIS PERIOD THE FIRM FAILED TO REASONABLY SUPERVISE THE APPLICATION OF SALES CHARGE WAIVERS TO MUTUAL FUNDS TRANSACTIONS BY ELIGIBLE CUSTOMERS, FAILED TO MAINTAIN WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO ASSIST FINANCIAL ADVISORS IN DETERMINING WHETHER A CUSTOMER WAS ELIGIBLE FOR A SALES CHARGE WAIVER, AND FAILED TO NOTIFY AND TRAIN ITS FINANCIAL ADVISORS REGARDING THE AVAILABILITY OF MUTUAL FUND SALES CHARGE WAIVERS FOR ELIGIBLE CUSTOMERS. FINRA ALLEGED THAT THESE SUPERVISORY VIOLATIONS RESULTED IN THE FIRM VIOLATING NASD CONDUCT RULE 3010 (FOR VIOLATIONS BEFORE DECEMBER 1, 2014), AND FINRA RULE 3110 (FOR VIOLATIONS AFTER DECEMBER 1, 2014, AND FINRA RULE 2010. 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Acceptance, Waiver & Consent(AWC) 11. Resolution Date (MM/DD/YYYY): 04/23/2019 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: THE FIRM CONSENTED TO THE ENTRY OF A CENSURE, AND AGREED TO PROVIDE REMEDIATION TO ELIGIBLE CUSTOMERS WHO QUALIFIED FOR, BUT DID NOT RECEIVE, THE APPLICABLE MUTUAL FUND SALES-CHARGE WAIVER. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided). WITHOUT ADMITTING OR DENYING THESE FINDINGS, THE FIRM ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) WITH FINRA. THE FIRM FURTHER AGREED TO PROVIDE FINRA WITH I) A SCHEDULE OF ELIGIBLE CUSTOMERS IDENTIFIED FOR REMEDIATION, AND A DETAILED PLAN TO REMEDIATE ELIGIBLE CUSTOMERS BASED ON SPECIFIC DETAILS WITHIN 60 DAYS OF THE AWC'S ACCEPTANCE, AND II) A SATISFACTORY PROOF OF PAYMENT OF RESTITUTION TO ELIGIBLE CUSTOMERS BY A REGISTERED PRINCIPAL OF THE FIRM NO LATER THAN 180 DAYS FROM THE AWC'S ACCEPTANCE. THE FIRM ESTIMATES THAT ELIGIBLE CUSTOMERS WERE OVERCHARGED BY $125,982. FINRA ACCEPTED THE AWC ON 4/23/2019.
regulatory · block 5PDF pages 64–65
- Regulator name — filed text
- THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
- Monetary/Fine Amount — filed text
- $ 500,000.00
- How was matter resolved — filed text
- Acceptance, Waiver & Consent(AWC)
Action status / disposition — filed text
WITHOUT ADMITTING OR DENYING THESE FINDINGS, THE FIRM ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) WITH FINRA. THE FIRM FURTHER AGREED TO PAY THE MONETORY SANCTION OF $500,000 AT THE TIME THE AWC WAS ACCEPTED. FINRA ACCEPTED THE AWC ON JANUARY 25, 2024.
Other filed details
Description of allegations — filed text
THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT BETWEEN MARCH 2018 AND SEPTEMBER 2019, VOYA FINANCIAL ADVISORS, INC. (FIRM) PAID APPROXIMATELY $2.9 MILION TO AN UNREGISTERED ENTTIY IN CONNECTION WITH THE SALE OF VARIABLE UNIVERSAL LIFE INSURANCE (VUL), A SECURITIES PRODUCT. THE FIRM AND THE UNREGISTERED ENTITY WERE PARTIES TO A VARIABLE MARKETING AGREEMENT, WHICH PROVIDED THAT THE UNREGISTERED ENTITY WOULD PROVIDE A VARIETY OF SERVICES TO FACILITATE VUL SALES, INCLUDING DISTRIBUTING SALES MATERIALS AND ASSISTING WITH SALES PROMOTIONAL ACTIVITIES. FINRA ALLEGED THAT THESE PAYMENTS RESULTED IN THE FIRM VIOLATING FINRA RULE 2040 AND FINRA RULE 2010.
Sanction detail — filed text
THE FIRM CONSENTED TO THE ENTRY OF A CENSURE AND TO PAY A FINE IN THE AMOUNT OF $500,000. THE FIRM PAID THIS FINE ON 1/30/2024.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) 2. Principal Sanction: Civil and Administrative Penalt(ies) /Fine(s) Other Sanctions: CENSURE 3. Date Initiated (MM/DD/YYYY): 01/25/2024 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: NO. 2020065474001 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: Insurance Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT BETWEEN MARCH 2018 AND SEPTEMBER 2019, VOYA FINANCIAL ADVISORS, INC. (FIRM) PAID APPROXIMATELY $2.9 MILION TO AN UNREGISTERED ENTTIY IN CONNECTION WITH THE SALE OF VARIABLE UNIVERSAL LIFE INSURANCE (VUL), A SECURITIES PRODUCT. THE FIRM AND THE UNREGISTERED ENTITY WERE PARTIES TO A VARIABLE MARKETING AGREEMENT, WHICH PROVIDED THAT THE UNREGISTERED ENTITY WOULD PROVIDE A VARIETY OF SERVICES TO FACILITATE VUL SALES, INCLUDING DISTRIBUTING SALES MATERIALS AND ASSISTING WITH SALES PROMOTIONAL ACTIVITIES. FINRA ALLEGED THAT THESE PAYMENTS RESULTED IN THE FIRM VIOLATING FINRA RULE 2040 AND FINRA RULE 2010. 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Acceptance, Waiver & Consent(AWC) 11. Resolution Date (MM/DD/YYYY): 01/30/2024 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ 500,000.00 Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: THE FIRM CONSENTED TO THE ENTRY OF A CENSURE AND TO PAY A FINE IN THE AMOUNT OF $500,000. THE FIRM PAID THIS FINE ON 1/30/2024. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided). WITHOUT ADMITTING OR DENYING THESE FINDINGS, THE FIRM ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) WITH FINRA. THE FIRM FURTHER AGREED TO PAY THE MONETORY SANCTION OF $500,000 AT THE TIME THE AWC WAS ACCEPTED. FINRA ACCEPTED THE AWC ON JANUARY 25, 2024.
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regulatory · block 6PDF pages 66–67
- Regulator name — filed text
- OHIO DEPARTMENT OF INSURANCE
- Monetary/Fine Amount — filed text
- $ 400.00
- How was matter resolved — filed text
- Consent
Action status / disposition — filed text
THE OHIO DEPARTMENT OF INSURANCE ALLEGED THAT THE FIRM VIOLATED OHIO REVISED CODE § 3905.22(A) BY FAILING TO TIMELY REPORT A REGULATORY ACTION, TAKEN BY FINRA ON JULY 20, 2015, FINING THE FIRM $325,000 AND ORDERING PAYMENT OF RESTITUTION IN THE AMOUNT OF $41,856.20 (THE "REGULATORY ACTION"). BY FAILING TO REPORT THE REGULATORY ACTION, THE FIRM ALSO VIOLATED OHIO REVISED CODE § 3905.14(B) (1) BY PROVIDING AN INCORRECT ANSWER ON THE FIRM'S LICENSE RENEWAL PAPERWORK. ON AUGUST 21, 2015 THE FIRM MARKED "NO" WHEN ASKED IF IT HAD BEEN INVOLVED IN AN ADMINISTRATIVE ACTION THAT HAD NOT BEEN PREVIOUSLY REPORTED TO THE DEPARTMENT. THE FIRM ADMITTED THAT THE AFOREMENTIONED ALLEGATIONS ARE TRUE AND ACCURATE AND THAT THE STATUTES CITED WERE VIOLATED. THE FIRM PAID A CIVIL PENALTY OF $400.00 AND ADMINISTRATIVE COSTS OF $100.00."
Other filed details
Description of allegations — filed text
THE OHIO DEPARTMENT OF INSURANCE ALLEGED THAT THE FIRM VIOLATED OHIO REVISED CODE § 3905.22(A) BY FAILING TO TIMELY REPORT A REGULATORY ACTION, TAKEN BY FINRA ON JULY 20, 2015, FINING THE FIRM $325,000 AND ORDERING PAYMENT OF RESTITUTION IN THE AMOUNT OF $41,856.20 (THE "REGULATORY ACTION"). BY FAILING TO REPORT THE REGULATORY ACTION, THE FIRM ALSO VIOLATED OHIO REVISED CODE § 3905.14(B) (1) BY PROVIDING AN INCORRECT ANSWER ON THE FIRM'S LICENSE RENEWAL PAPERWORK. ON AUGUST 21, 2015 THE FIRM MARKED "NO" WHEN ASKED IF IT HAD BEEN INVOLVED IN AN ADMINISTRATIVE ACTION THAT HAD NOT BEEN PREVIOUSLY REPORTED TO THE DEPARTMENT. THE FIRM ADMITTED THAT THE AFOREMENTIONED ALLEGATIONS ARE TRUE AND ACCURATE AND THAT THE STATUTES CITED WERE VIOLATED. THE FIRM PAID A CIVIL PENALTY OF $400.00 AND ADMINISTRATIVE COSTS OF $100.00."
Sanction detail — filed text
THE FIRM PAID A CIVIL PENALTY OF $400.00 AND ADMINISTRATIVE COSTS OF $100.00.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) OHIO DEPARTMENT OF INSURANCE 2. Principal Sanction: Civil and Administrative Penalt(ies) /Fine(s) Other Sanctions: 3. Date Initiated (MM/DD/YYYY): 04/18/2016 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: No Product Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE OHIO DEPARTMENT OF INSURANCE ALLEGED THAT THE FIRM VIOLATED OHIO REVISED CODE § 3905.22(A) BY FAILING TO TIMELY REPORT A REGULATORY ACTION, TAKEN BY FINRA ON JULY 20, 2015, FINING THE FIRM $325,000 AND ORDERING PAYMENT OF RESTITUTION IN THE AMOUNT OF $41,856.20 (THE "REGULATORY ACTION"). BY FAILING TO REPORT THE REGULATORY ACTION, THE FIRM ALSO VIOLATED OHIO REVISED CODE § 3905.14(B) (1) BY PROVIDING AN INCORRECT ANSWER ON THE FIRM'S LICENSE RENEWAL PAPERWORK. ON AUGUST 21, 2015 THE FIRM MARKED "NO" WHEN ASKED IF IT HAD BEEN INVOLVED IN AN ADMINISTRATIVE ACTION THAT HAD NOT BEEN PREVIOUSLY REPORTED TO THE DEPARTMENT. THE FIRM ADMITTED THAT THE AFOREMENTIONED ALLEGATIONS ARE TRUE AND ACCURATE AND THAT THE STATUTES CITED WERE VIOLATED. THE FIRM PAID A CIVIL PENALTY OF $400.00 AND ADMINISTRATIVE COSTS OF $100.00." 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Consent 11. Resolution Date (MM/DD/YYYY): 04/18/2016 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ 400.00 Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: THE FIRM PAID A CIVIL PENALTY OF $400.00 AND ADMINISTRATIVE COSTS OF $100.00. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided). THE OHIO DEPARTMENT OF INSURANCE ALLEGED THAT THE FIRM VIOLATED OHIO REVISED CODE § 3905.22(A) BY FAILING TO TIMELY REPORT A REGULATORY ACTION, TAKEN BY FINRA ON JULY 20, 2015, FINING THE FIRM $325,000 AND ORDERING PAYMENT OF RESTITUTION IN THE AMOUNT OF $41,856.20 (THE "REGULATORY ACTION"). BY FAILING TO REPORT THE REGULATORY ACTION, THE FIRM ALSO VIOLATED OHIO REVISED CODE § 3905.14(B) (1) BY PROVIDING AN INCORRECT ANSWER ON THE FIRM'S LICENSE RENEWAL PAPERWORK. ON AUGUST 21, 2015 THE FIRM MARKED "NO" WHEN ASKED IF IT HAD BEEN INVOLVED IN AN ADMINISTRATIVE ACTION THAT HAD NOT BEEN PREVIOUSLY REPORTED TO THE DEPARTMENT. THE FIRM ADMITTED THAT THE AFOREMENTIONED ALLEGATIONS ARE TRUE AND ACCURATE AND THAT THE STATUTES CITED WERE VIOLATED. THE FIRM PAID A CIVIL PENALTY OF $400.00 AND ADMINISTRATIVE COSTS OF $100.00."
regulatory · block 7PDF pages 67–69
- Regulator name — filed text
- COMMONWEALTH OF MASSACHUSETTS OFFICE OF THE SECRETARY OF THE COMMONWEALTH SECURITIES DIVISION
- Monetary/Fine Amount — filed text
- $ 100,000.00
- How was matter resolved — filed text
- Consent
Other filed details
Description of allegations — filed text
THE COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION (THE "DIVISION") ALLEGED THAT THE FIRM VIOLATED SECTION 204(A)(2)(J) OF THE MASSACHUSETTS UNIFORM SECURITIES ACT BY FAILING TO INCLUDE SPECIFIC POLICIES REGARDING VOTING SHAREHOLDER PROXIES IN ITS WRITTEN SUPERVISORY PROCEDURES OR OTHER MANUALS.
Sanction detail — filed text
THE COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION (THE "DIVISION") ALLEGED THAT THE FIRM VIOLATED SECTION 204(A)(2)(J) OF THE MASSACHUSETTS UNIFORM SECURITIES ACT BY FAILING TO INCLUDE SPECIFIC POLICIES REGARDING VOTING SHAREHOLDER PROXIES IN ITS WRITTEN SUPERVISORY PROCEDURES OR OTHER MANUALS. THE DIVISION FOUND THAT TWO FIRM REPRESENTATIVES VOTED SHAREHOLDER PROXIES ON BEHALF OF CUSTOMERS DESPITE VFA'S POSITION THAT IT DOES NOT PERMIT REGISTERED REPRESENTATIVES TO VOTE SHAREHOLDER PROXIES ON BEHALF OF CUSTOMERS. VFA ENTERED INTO A CONSENT ORDER WITH THE DIVISION ON JUNE 22, 2016. VFA ADMITTED THE DIVISION'S STATEMENT OF FACTS BUT NEITHER ADMITTED NOR DENIED THE VIOLATIONS OF LAW CONTAINED THEREIN. VFA WAS CENSURED AND PAID AN ADMINISTRATIVE FINE OF $100,000.00 TO THE COMMONWEALTH OF MASSACHUSETTS. VFA WAS ALSO REQUIRED TO CERTIFY THAT IT HAD REVIEWED ITS WRITTEN SUPERVISORY POLICIES AND PROCEDURES WITH RESPECT TO BROKER-DEALER REPRESENTATIVE PROXY VOTING. VFA AGREED TO REPORT TO THE DIVISION WITHIN THIRTY (30) DAYS OF THE CONSENT ORDER REGARDING THE STEPS TAKEN BY VFA DURING ITS REVIEW, ALONG WITH CONCLUSIONS AND RECOMMENDATIONS RESULTING FROM THE REVIEW.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) COMMONWEALTH OF MASSACHUSETTS OFFICE OF THE SECRETARY OF THE COMMONWEALTH SECURITIES DIVISION 2. Principal Sanction: Censure Other Sanctions: CEASE AND DESIST ADMINISTRATIVE FINE 3. Date Initiated (MM/DD/YYYY): 06/22/2016 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: E-2016-0020 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: Direct Investment(s) - DPP & LP Interest(s) Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION (THE "DIVISION") ALLEGED THAT THE FIRM VIOLATED SECTION 204(A)(2)(J) OF THE MASSACHUSETTS UNIFORM SECURITIES ACT BY FAILING TO INCLUDE SPECIFIC POLICIES REGARDING VOTING SHAREHOLDER PROXIES IN ITS WRITTEN SUPERVISORY PROCEDURES OR OTHER MANUALS. 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Consent 11. Resolution Date (MM/DD/YYYY): 07/01/2016 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ 100,000.00 Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: THE COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION (THE "DIVISION") ALLEGED THAT THE FIRM VIOLATED SECTION 204(A)(2)(J) OF THE MASSACHUSETTS UNIFORM SECURITIES ACT BY FAILING TO INCLUDE SPECIFIC POLICIES REGARDING VOTING SHAREHOLDER PROXIES IN ITS WRITTEN SUPERVISORY PROCEDURES OR OTHER MANUALS. THE DIVISION FOUND THAT TWO FIRM REPRESENTATIVES VOTED SHAREHOLDER PROXIES ON BEHALF OF CUSTOMERS DESPITE VFA'S POSITION THAT IT DOES NOT PERMIT REGISTERED REPRESENTATIVES TO VOTE SHAREHOLDER PROXIES ON BEHALF OF CUSTOMERS. VFA ENTERED INTO A CONSENT ORDER WITH THE DIVISION ON JUNE 22, 2016. VFA ADMITTED THE DIVISION'S STATEMENT OF FACTS BUT NEITHER ADMITTED NOR DENIED THE VIOLATIONS OF LAW CONTAINED THEREIN. VFA WAS CENSURED AND PAID AN ADMINISTRATIVE FINE OF $100,000.00 TO THE COMMONWEALTH OF MASSACHUSETTS. VFA WAS ALSO REQUIRED TO CERTIFY THAT IT HAD REVIEWED ITS WRITTEN SUPERVISORY POLICIES AND PROCEDURES WITH RESPECT TO BROKER-DEALER REPRESENTATIVE PROXY VOTING. VFA AGREED TO REPORT TO THE DIVISION WITHIN THIRTY (30) DAYS OF THE CONSENT ORDER REGARDING THE STEPS TAKEN BY VFA DURING ITS REVIEW, ALONG WITH CONCLUSIONS AND RECOMMENDATIONS RESULTING FROM THE REVIEW. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided).
regulatory · block 8PDF pages 69–71
- Regulator name — filed text
- THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
- Monetary/Fine Amount — filed text
- $ 2,750,000.00
- How was matter resolved — filed text
- Acceptance, Waiver & Consent(AWC)
Other filed details
Description of allegations — filed text
THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. (FIRM) FAILED TO (A) IMPLEMENT A SUPERVISORY SYSTEM AND PROCEDURES DESIGNED TO REASONABLY ENSURE SUITABILITY OF ITS MULTI-SHARE CLASS VARIABLE ANNUITIES SOLD TO CUSTOMERS, (B) IDENTIFY AND INVESTIGATE RED FLAGS IN VARIABLE ANNUITY SALES, (C) SUPERVISE VARIABLE ANNUITY SALES, AND (D) IMPLEMENT AN ADEQUATE SUPERVISORY SYSTEM AND PROCEDURES FOR VARIABLE ANNUITY EXCHANGE TRANSACTIONS. THE FIRM'S FAILURES INCLUDED, BUT WERE NOT LIMITED TO SUPERVISION AND OVERSIGHT, AND THE MAINTENANCE OF POLICIES AND PROCEDURES REGARDING THE SALE OF L-SHARE VARIABLE ANNUITIES WITH LONG-TERM INCOME RIDERS AND NO PERSISTENCY CREDITS TO INVESTORS WITH LONG-TERM TIME HORIZONS.
Sanction detail — filed text
WITHOUT ADMITTING OR DENYING FINRA'S FINDINGS, THE FIRM ACCEPTED AND CONSENTED TO THE ENTRY OF FINDINGS AND THE SANCTIONS DESCRIBED BELOW BY AGREEING TO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) THAT WAS ACCEPTED BY FINRA ON NOVEMBER 2, 2016. THE AWC INCLUDED A FIRM CENSURE AND FINE IN THE AMOUNT OF $2,750,000. THE FIRM AGREED TO PAY RESTITUTION TO CUSTOMERS IN ACCORDANCE WITH A PLAN NOT UNACCEPTABLE TO FINRA IN AN AMOUNT THAT WILL TOTAL NOT LESS THAN $1,800,000. THE FIRM ADDITIONALLY AGREED TO REVIEW AND REVISE, AS NECESSARY, ITS SYSTEMS, POLICIES AND PROCEDURES AND TRAINING WITH RESPECT TO MULTI-SHARE CLASS VARIABLE ANNUITY SALES. THE FIRM WILL CERTIFY TO FINRA THAT IT HAS ESTABLISHED POLICIES AND PROCEDURES THAT ARE REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE FINRA AND NASD RULES.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) 2. Principal Sanction: Civil and Administrative Penalt(ies) /Fine(s) Other Sanctions: CENSURE, RESTITUTION. 3. Date Initiated (MM/DD/YYYY): 11/02/2016 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: 2014039172901 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: Annuity(ies) - Variable Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. (FIRM) FAILED TO (A) IMPLEMENT A SUPERVISORY SYSTEM AND PROCEDURES DESIGNED TO REASONABLY ENSURE SUITABILITY OF ITS MULTI-SHARE CLASS VARIABLE ANNUITIES SOLD TO CUSTOMERS, (B) IDENTIFY AND INVESTIGATE RED FLAGS IN VARIABLE ANNUITY SALES, (C) SUPERVISE VARIABLE ANNUITY SALES, AND (D) IMPLEMENT AN ADEQUATE SUPERVISORY SYSTEM AND PROCEDURES FOR VARIABLE ANNUITY EXCHANGE TRANSACTIONS. THE FIRM'S FAILURES INCLUDED, BUT WERE NOT LIMITED TO SUPERVISION AND OVERSIGHT, AND THE MAINTENANCE OF POLICIES AND PROCEDURES REGARDING THE SALE OF L-SHARE VARIABLE ANNUITIES WITH LONG-TERM INCOME RIDERS AND NO PERSISTENCY CREDITS TO INVESTORS WITH LONG-TERM TIME HORIZONS. 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Acceptance, Waiver & Consent(AWC) 11. Resolution Date (MM/DD/YYYY): 11/02/2016 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ 2,750,000.00 Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: UNDERTAKING Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: WITHOUT ADMITTING OR DENYING FINRA'S FINDINGS, THE FIRM ACCEPTED AND CONSENTED TO THE ENTRY OF FINDINGS AND THE SANCTIONS DESCRIBED BELOW BY AGREEING TO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) THAT WAS ACCEPTED BY FINRA ON NOVEMBER 2, 2016. THE AWC INCLUDED A FIRM CENSURE AND FINE IN THE AMOUNT OF $2,750,000. THE FIRM AGREED TO PAY RESTITUTION TO CUSTOMERS IN ACCORDANCE WITH A PLAN NOT UNACCEPTABLE TO FINRA IN AN AMOUNT THAT WILL TOTAL NOT LESS THAN $1,800,000. THE FIRM ADDITIONALLY AGREED TO REVIEW AND REVISE, AS NECESSARY, ITS SYSTEMS, POLICIES AND PROCEDURES AND TRAINING WITH RESPECT TO MULTI-SHARE CLASS VARIABLE ANNUITY SALES. THE FIRM WILL CERTIFY TO FINRA THAT IT HAS ESTABLISHED POLICIES AND PROCEDURES THAT ARE REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE FINRA AND NASD RULES. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided).
regulatory · block 9PDF pages 71–73
- Regulator name — filed text
- THE FINANCIAL INDUSTRY REGULATORY AUTHORITY
- Monetary/Fine Amount — filed text
- $ 7,500.00
- How was matter resolved — filed text
- Acceptance, Waiver & Consent(AWC)
Other filed details
Description of allegations — filed text
THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. (FIRM) FAILED TO REPORT TO TRACE 100 TRANSACTIONS IN TRACE AGENCY/SECURITIZED PRODUCTS (SP) WITHIN THE TIME PERMITTED BY FINRA RULE 6730, CONSTITUTING 26.25 PERCENT OF THE TRANSACTIONS IN TRACE-ELIGIBLE SP (381) THAT THE FIRM REPORTED TO TRACE DURING THE FOURTH QUARTER OF 2015. THIS CONDUCT CONSTITUTED SEPARATE AND DISTINCT VIOLATIONS OF FINRA RULE 6730(A) AND A PATTERN OR PRACTICE OF LATE REPORTING WITHOUT EXCEPTIONAL CIRCUMSTANCES IN VIOLATION OF FINRA RULE 2010.
Sanction detail — filed text
WITHOUT ADMITTING OR DENYING FINRA'S FINDINGS, THE FIRM ACCEPTED AND CONSENTED TO THE DESCRIBED FINDINGS AND TO THE ENTRY OF A CENSURE AND FINE IN THE AMOUNT OF $7,500 BY AGREEING TO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) WITH FINRA. FINRA ACCEPTED THE AWC ON MARCH 1, 2017.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) THE FINANCIAL INDUSTRY REGULATORY AUTHORITY 2. Principal Sanction: Censure Other Sanctions: FINE 3. Date Initiated (MM/DD/YYYY): 03/01/2017 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: 20160487927-01 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: No Product Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. (FIRM) FAILED TO REPORT TO TRACE 100 TRANSACTIONS IN TRACE AGENCY/SECURITIZED PRODUCTS (SP) WITHIN THE TIME PERMITTED BY FINRA RULE 6730, CONSTITUTING 26.25 PERCENT OF THE TRANSACTIONS IN TRACE-ELIGIBLE SP (381) THAT THE FIRM REPORTED TO TRACE DURING THE FOURTH QUARTER OF 2015. THIS CONDUCT CONSTITUTED SEPARATE AND DISTINCT VIOLATIONS OF FINRA RULE 6730(A) AND A PATTERN OR PRACTICE OF LATE REPORTING WITHOUT EXCEPTIONAL CIRCUMSTANCES IN VIOLATION OF FINRA RULE 2010. 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Acceptance, Waiver & Consent(AWC) 11. Resolution Date (MM/DD/YYYY): 03/01/2017 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ 7,500.00 Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: WITHOUT ADMITTING OR DENYING FINRA'S FINDINGS, THE FIRM ACCEPTED AND CONSENTED TO THE DESCRIBED FINDINGS AND TO THE ENTRY OF A CENSURE AND FINE IN THE AMOUNT OF $7,500 BY AGREEING TO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) WITH FINRA. FINRA ACCEPTED THE AWC ON MARCH 1, 2017. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided).
regulatory · block 10PDF pages 73–75
- Regulator name — filed text
- MASSACHUSETTS SECURITIES DIVISION OF THE OFFICE OF THE SECRETARY OF THE COMMONWEALTH
- Monetary/Fine Amount — filed text
- $ 75,000.00
- How was matter resolved — filed text
- Settled
Action status / disposition — filed text
THE FIRM ADMITTED TO THE FACTS DESCRIBED BUT NEITHER ADMITTED NOR DENIED ANY VIOLATIONS OF LAW. THE FIRM CONSENTED TO THE ENTRY OF A CONSENT ORDER THAT FOUND THAT THE FIRM VIOLATED SECTIONS 201(C) AND 201(D) OF THE ACT. THE FIRM AGREED TO I.) CEASE AND DESIST FROM ANY VIOLATIONS OF SECTIONS 201(C) AND 201(D) OF THE ACT IN THE COMMONWEALTH, II.) REGISTER ITS INVESTMENT ADVISER REPRESENTATIVES IN THE COMMONWEALTH PRIOR TO THEM PROVIDING INVESTMENT ADVISORY SERVICES IN THE COMMONWEALTH, III.) REVIEW ITS WRITTEN SUPERVISORY POLICIES AND PROCEDURES WITH RESPECT TO, AND PROVIDE COMPLIANCE WITH SECTIONS 201(C) AND 201(D) OF THE ACT, IV.) PAY RESTITUTION OF ALL ASSET MANAGEMENT FEES PAID BY CLIENTS LOCATED IN THE COMMONWEALTH TO THE REPRESENTATIVES IN QUESTION DURING THE RELEVANT PERIOD ("ELIGIBLE CLIENTS"), WHICH WAS DETERMINED TO AMOUNT TO $10,936.47, V.) MEMORIALIZE ITS RESTITUTION IN A LETTER ("RESTITUTION LETTER") TO EACH ELIGIBLE CLIENT WITHIN THIRTY (30) DAYS OF THE CONSENT ORDER, AND VI.) PROVIDE THE RESTITUTION LETTER TO THE DIVISION AT LEAST TEN (10 ) DAYS PRIOR TO THE SENDING OF THE RESTITUTION LETTER TO ELIGIBLE CLIENTS. THE FIRM FURTHER AGREED TO REIMBURSE THE ASSET MANAGEMENT FEES TO EACH ELIGIBLE CLIENT WITHIN FORTY-FIVE (45) DAYS OF THE CONSENT ORDER, AND SUBMIT TO THE DIVISION A REPORT DETAILING THE DISTRIBUTION OF ALL FUNDS TO ELIGIBLE CLIENTS WITHIN NINETY (90) DAYS OF THE CONSENT ORDER. THE FIRM PAID A FINE OF $75,000
Other filed details
Description of allegations — filed text
THE COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. ("FIRM") VIOLATED THE MASSACHUSETTS UNIFORM SECURITIES ACT, MASS. GEN. LAWS CH. 110A ("ACT'), BY FAILING TO REGISTER TWO (2) OF ITS INVESTMENT ADVISER REPRESENTATIVES WHO HAD A PLACE OF BUSINESS IN MASSACHUSETTS AND PROVIDED INVESTMENT ADVISORY SERVICES TO RESIDENTS OF THE COMMONWEALTH BETWEEN AUGUST 24, 2012 TO JANUARY 30, 2017 (THE "RELEVANT PERIOD").
Sanction detail — filed text
THE FIRM AGREED TO PAY RESTITUTION OF ALL ASSET MANAGEMENT FEES PAID BY CLIENTS LOCATED IN THE COMMONWEALTH TO THE REPRESENTATIVES IN QUESTION DURING THE RELEVANT PERIOD ("ELIGIBLE CLIENTS"), WHICH WAS DETERMINED TO AMOUNT TO $10,936.47. THE FIRM PAID A FINE OF $75,000
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS
This Disclosure Reporting Page (DRP ADV) is an
INITIAL OR
AMENDED response used to report details for affirmative responses to Items 11.C., 11.D.,
11.E., 11.F. or 11.G. of Form ADV.
Regulatory Action
Check item(s) being responded to:
11.C(1)
11.C(2)
11.C(3)
11.C(4)
11.C(5)
11.D(1)
11.D(2)
11.D(3)
11.D(4)
11.D(5)
11.E(1)
11.E(2)
11.E(3)
11.E(4)
11.F.
11.G.
Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File
with a completed Execution Page.
One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the
same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP.
PART I
A. The person(s) or entity(ies) for whom this DRP is being filed is (are):
You (the advisory firm)
You and one or more of your advisory affiliates
One or more of your advisory affiliates
If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name).
If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box.
ADV DRP - ADVISORY AFFILIATE
No Information Filed
This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser.
This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is
registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the
adviser's or advisory affiliate's favor.
If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item
11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any
event listed in Item 11 that occurred more than ten years ago.
This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the
circumstances:
B.
If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to
the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided.
Yes
No
NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records.
PART II
1. Regulatory Action initiated by:
SEC
Other Federal
State
SRO
Foreign
(Full name of regulator, foreign financial regulatory authority, federal, state, or SRO)
MASSACHUSETTS SECURITIES DIVISION OF THE OFFICE OF THE SECRETARY OF THE COMMONWEALTH
2.
Principal Sanction:
Cease and Desist
Other Sanctions:
UNDERTAKING, RESTITUTION, FINE
3.
Date Initiated (MM/DD/YYYY):
07/27/2017
Exact
Explanation
If not exact, provide explanation:
4.
Docket/Case Number:
2017-0033
5.
Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable):
6.
Principal Product Type:
No Product
Other Product Types:
7.
Describe the allegations related to this regulatory action (your response must fit within the space provided):
THE COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION ALLEGED THAT VOYA FINANCIAL ADVISORS, INC. ("FIRM") VIOLATED THE
MASSACHUSETTS UNIFORM SECURITIES ACT, MASS. GEN. LAWS CH. 110A ("ACT'), BY FAILING TO REGISTER TWO (2) OF ITS INVESTMENT ADVISER
REPRESENTATIVES WHO HAD A PLACE OF BUSINESS IN MASSACHUSETTS AND PROVIDED INVESTMENT ADVISORY SERVICES TO RESIDENTS OF THE
COMMONWEALTH BETWEEN AUGUST 24, 2012 TO JANUARY 30, 2017 (THE "RELEVANT PERIOD").
8.
Current Status?
Pending
On Appeal
Final
9.
If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed:
If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only.
10. How was matter resolved:
Settled
11. Resolution Date (MM/DD/YYYY):
07/31/2017
Exact
Explanation
If not exact, provide explanation:
12. Resolution Detail:
A. Were any of the following Sanctions Ordered (check all appropriate items)?
Monetary/Fine Amount: $ 75,000.00
Revocation/Expulsion/Denial
Disgorgement/Restitution
Censure
Cease and Desist/Injunction
Bar
Suspension
B.
Other Sanctions Ordered:
Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal,
Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to
requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution,
disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion
of penalty was waived:
THE FIRM AGREED TO PAY RESTITUTION OF ALL ASSET MANAGEMENT FEES PAID BY CLIENTS LOCATED IN THE COMMONWEALTH TO THE
REPRESENTATIVES IN QUESTION DURING THE RELEVANT PERIOD ("ELIGIBLE CLIENTS"), WHICH WAS DETERMINED TO AMOUNT TO $10,936.47.
THE FIRM PAID A FINE OF $75,000
13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response
must fit within the space provided).
THE FIRM ADMITTED TO THE FACTS DESCRIBED BUT NEITHER ADMITTED NOR DENIED ANY VIOLATIONS OF LAW. THE FIRM CONSENTED TO THE ENTRY
OF A CONSENT ORDER THAT FOUND THAT THE FIRM VIOLATED SECTIONS 201(C) AND 201(D) OF THE ACT. THE FIRM AGREED TO I.) CEASE AND DESIST
FROM ANY VIOLATIONS OF SECTIONS 201(C) AND 201(D) OF THE ACT IN THE COMMONWEALTH, II.) REGISTER ITS INVESTMENT ADVISER
REPRESENTATIVES IN THE COMMONWEALTH PRIOR TO THEM PROVIDING INVESTMENT ADVISORY SERVICES IN THE COMMONWEALTH, III.) REVIEW ITS
WRITTEN SUPERVISORY POLICIES AND PROCEDURES WITH RESPECT TO, AND PROVIDE COMPLIANCE WITH SECTIONS 201(C) AND 201(D) OF THE ACT,
IV.) PAY RESTITUTION OF ALL ASSET MANAGEMENT FEES PAID BY CLIENTS LOCATED IN THE COMMONWEALTH TO THE REPRESENTATIVES IN QUESTION
DURING THE RELEVANT PERIOD ("ELIGIBLE CLIENTS"), WHICH WAS DETERMINED TO AMOUNT TO $10,936.47, V.) MEMORIALIZE ITS RESTITUTION IN A
LETTER ("RESTITUTION LETTER") TO EACH ELIGIBLE CLIENT WITHIN THIRTY (30) DAYS OF THE CONSENT ORDER, AND VI.) PROVIDE THE RESTITUTION
LETTER TO THE DIVISION AT LEAST TEN (10 ) DAYS PRIOR TO THE SENDING OF THE RESTITUTION LETTER TO ELIGIBLE CLIENTS. THE FIRM FURTHER
AGREED TO REIMBURSE THE ASSET MANAGEMENT FEES TO EACH ELIGIBLE CLIENT WITHIN FORTY-FIVE (45) DAYS OF THE CONSENT ORDER, AND
SUBMIT TO THE DIVISION A REPORT DETAILING THE DISTRIBUTION OF ALL FUNDS TO ELIGIBLE CLIENTS WITHIN NINETY (90) DAYS OF THE CONSENT
ORDER. THE FIRM PAID A FINE OF $75,000regulatory · block 11PDF pages 75–77
- Regulator name — filed text
- SECURITIES AND EXCHANGE COMMISSION
- Monetary/Fine Amount — filed text
- $ 9,000,000.00
- How was matter resolved — filed text
- Consent
Action status / disposition — filed text
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, AND SOLELY FOR THE PURPOSE OF SETTLING THIS PROCEEDING, THE FIRM CONSENTED TO THE ENTRY OF AN ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS (THE "ORDER"), A CENSURE, TO PAY TO AFFECTED INVESTORS DISGORGEMENT OF $11,547,820 AND PREJUDGMENT INTEREST OF $2,371,335, AND TO PAY A $9 MILLION CIVIL MONETARY PENALTY. THE FIRM AGREED TO COMPLY WITH THE FOLLOWING UNDERTAKINGS: NOTIFY AFFECTED INVESTMENT ADVISORY CLIENTS WITHIN 30 DAYS OF THE ORDER, RETAIN AN INDEPENDENT COMPLIANCE CONSULTANT WITHIN 30 DAYS OF THE ORDER TO CONDUCT A REVIEW OF THE FIRM'S COMPENSATION RECEIPT AND DISCLOSURE PRACTICES WITH RESPECT TO ADVISORY CLIENT INVESTMENTS, AND ADOPT ALL OF RECOMMENDATIONS CONTAINED IN THE INDEPENDENT COMPLIANCE CONSULTANT'S REPORTS. THE FIRM WILL CERTIFY ITS COMPLIANCE WITH THE PREVIOUS UNDERTAKINGS NO LATER THAN SIXTY DAYS FROM THE COMPLETION OF THE UNDERTAKING. THE ORDER WAS EXECUTED ON DECEMBER 21, 2020.
Other filed details
Description of allegations — filed text
VOYA FINANCIAL ADVISORS, INC. ("FIRM") HAS SUBMITTED AN OFFER OF SETTLEMENT THAT THE SECURITIES AND EXCHANGE COMMISSION ("SEC") HAS AGREED TO ACCEPT. THE FIRM AGREES, WITHOUT ADMITTING OR DENYING SUCH FINDINGS, THAT IT VIOLATED SECTIONS 206(2) AND 206(4) OF THE INVESTMENT ADVISERS ACT AND RULE 206(4)-7 THEREUNDER BY FAILING TO DISCLOSE CONFLICTS OF INTEREST ASSOCIATED WITH (A) THE FIRM'S MUTUAL FUND SHARE CLASS SELECTION PRACTICES AND THE FINANCIAL BENEFITS IT RECEIVED FOR ADVISING CLIENTS TO PURCHASE AND HOLD MUTUAL FUND SHARE CLASSES THAT CHARGED FEES PURSUANT TO INVESTMENT COMPANY ACT RULE 12B-1; (B) THE FIRM'S RECEIPT OF COMPENSATION IN CONNECTION WITH CERTAIN CASH SWEEP OPTIONS; AND (C) THE FIRM'S POLICY REQUIRING ADVISORY CLIENTS TO PAY AN UPFRONT BROKERAGE COMMISSION WHEN PURCHASING ILLIQUID ALTERNATIVE INVESTMENT PRODUCTS WHEN THE SAME INVESTMENT WAS AVAILABLE TO ADVISORY CLIENTS WITH THE BROKERAGE COMMISSIONS WAIVED.
Sanction detail — filed text
THE FIRM CONSENTED TO PAY DISGORGEMENT, PREJUDGMENT INTEREST, AND A CIVIL PENALTY TOTALING $22,919,155
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS
This Disclosure Reporting Page (DRP ADV) is an
INITIAL OR
AMENDED response used to report details for affirmative responses to Items 11.C., 11.D.,
11.E., 11.F. or 11.G. of Form ADV.
Regulatory Action
Check item(s) being responded to:
11.C(1)
11.C(2)
11.C(3)
11.C(4)
11.C(5)
11.D(1)
11.D(2)
11.D(3)
11.D(4)
11.D(5)
11.E(1)
11.E(2)
11.E(3)
11.E(4)
11.F.
11.G.
Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File
with a completed Execution Page.
One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the
same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP.
PART I
A. The person(s) or entity(ies) for whom this DRP is being filed is (are):
You (the advisory firm)
You and one or more of your advisory affiliates
One or more of your advisory affiliates
If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name).
If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box.
ADV DRP - ADVISORY AFFILIATE
No Information Filed
This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser.
This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is
registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the
adviser's or advisory affiliate's favor.
If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item
11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any
event listed in Item 11 that occurred more than ten years ago.
This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the
circumstances:
B.
If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to
the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided.
Yes
No
NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records.
PART II
1. Regulatory Action initiated by:
SEC
Other Federal
State
SRO
Foreign
(Full name of regulator, foreign financial regulatory authority, federal, state, or SRO)
SECURITIES AND EXCHANGE COMMISSION
2.
Principal Sanction:
Cease and Desist
Other Sanctions:
CENSURE DISGORGEMENT RESTITUTION
3.
Date Initiated (MM/DD/YYYY):
12/21/2020
Exact
Explanation
If not exact, provide explanation:
4.
Docket/Case Number:
3-20183
5.
Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable):
VOYA FINANCIAL ADVISORS, INC.
6.
Principal Product Type:
Mutual Fund(s)
Other Product Types:
7.
Describe the allegations related to this regulatory action (your response must fit within the space provided):
VOYA FINANCIAL ADVISORS, INC. ("FIRM") HAS SUBMITTED AN OFFER OF SETTLEMENT THAT THE SECURITIES AND EXCHANGE COMMISSION ("SEC")
HAS AGREED TO ACCEPT. THE FIRM AGREES, WITHOUT ADMITTING OR DENYING SUCH FINDINGS, THAT IT VIOLATED SECTIONS 206(2) AND 206(4) OF
THE INVESTMENT ADVISERS ACT AND RULE 206(4)-7 THEREUNDER BY FAILING TO DISCLOSE CONFLICTS OF INTEREST ASSOCIATED WITH (A) THE
FIRM'S MUTUAL FUND SHARE CLASS SELECTION PRACTICES AND THE FINANCIAL BENEFITS IT RECEIVED FOR ADVISING CLIENTS TO PURCHASE AND
HOLD MUTUAL FUND SHARE CLASSES THAT CHARGED FEES PURSUANT TO INVESTMENT COMPANY ACT RULE 12B-1; (B) THE FIRM'S RECEIPT OF
COMPENSATION IN CONNECTION WITH CERTAIN CASH SWEEP OPTIONS; AND (C) THE FIRM'S POLICY REQUIRING ADVISORY CLIENTS TO PAY AN
UPFRONT BROKERAGE COMMISSION WHEN PURCHASING ILLIQUID ALTERNATIVE INVESTMENT PRODUCTS WHEN THE SAME INVESTMENT WAS
AVAILABLE TO ADVISORY CLIENTS WITH THE BROKERAGE COMMISSIONS WAIVED.
8.
Current Status?
Pending
On Appeal
Final
9.
If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed:
If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only.
10. How was matter resolved:
Consent
11. Resolution Date (MM/DD/YYYY):
12/21/2020
Exact
Explanation
If not exact, provide explanation:
12. Resolution Detail:
A. Were any of the following Sanctions Ordered (check all appropriate items)?
Monetary/Fine Amount: $ 9,000,000.00
Revocation/Expulsion/Denial
Disgorgement/Restitution
Censure
Cease and Desist/Injunction
Bar
Suspension
B.
Other Sanctions Ordered:
Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal,
Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to
requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution,
disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion
of penalty was waived:
THE FIRM CONSENTED TO PAY DISGORGEMENT, PREJUDGMENT INTEREST, AND A CIVIL PENALTY TOTALING $22,919,155
13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response
must fit within the space provided).
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, AND SOLELY FOR THE PURPOSE OF SETTLING THIS PROCEEDING, THE FIRM CONSENTED TO
THE ENTRY OF AN ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS (THE "ORDER"), A CENSURE, TO PAY TO AFFECTED
INVESTORS DISGORGEMENT OF $11,547,820 AND PREJUDGMENT INTEREST OF $2,371,335, AND TO PAY A $9 MILLION CIVIL MONETARY PENALTY. THE
FIRM AGREED TO COMPLY WITH THE FOLLOWING UNDERTAKINGS: NOTIFY AFFECTED INVESTMENT ADVISORY CLIENTS WITHIN 30 DAYS OF THE ORDER,
RETAIN AN INDEPENDENT COMPLIANCE CONSULTANT WITHIN 30 DAYS OF THE ORDER TO CONDUCT A REVIEW OF THE FIRM'S COMPENSATION RECEIPT
AND DISCLOSURE PRACTICES WITH RESPECT TO ADVISORY CLIENT INVESTMENTS, AND ADOPT ALL OF RECOMMENDATIONS CONTAINED IN THE
INDEPENDENT COMPLIANCE CONSULTANT'S REPORTS. THE FIRM WILL CERTIFY ITS COMPLIANCE WITH THE PREVIOUS UNDERTAKINGS NO LATER THAN
SIXTY DAYS FROM THE COMPLETION OF THE UNDERTAKING. THE ORDER WAS EXECUTED ON DECEMBER 21, 2020.regulatory · block 12PDF pages 77–78
- Regulator name — filed text
- ( g g g y y ) THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
- Monetary/Fine Amount — filed text
- $ 500,000.00
- How was matter resolved — filed text
- Acceptance, Waiver & Consent(AWC)
Action status / disposition — filed text
WITHOUT ADMITTING OR DENYING THESE FINDINGS, THE FIRM ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) WITH FINRA. THE FIRM FURTHER AGREED TO PAY THE MONETORY SANCTION OF $500,000 AT THE TIME THE AWC WAS ACCEPTED. FINRA ACCEPTED THE AWC ON JANUARY 25, 2024.
Other filed details
Description of allegations — filed text
THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT BETWEEN MARCH 2018 AND SEPTEMBER 2019, VOYA FINANCIAL ADVISORS, INC. (FIRM) PAID APPROXIMATELY $2.9 MILION TO AN UNREGISTERED ENTTIY IN CONNECTION WITH THE SALE OF VARIABLE UNIVERSAL LIFE INSURANCE (VUL), A SECURITIES PRODUCT. THE FIRM AND THE UNREGISTERED ENTITY WERE PARTIES TO A VARIABLE MARKETING AGREEMENT, WHICH PROVIDED THAT THE UNREGISTERED ENTITY WOULD PROVIDE A VARIETY OF SERVICES TO FACILITATE VUL SALES, INCLUDING DISTRIBUTING SALES MATERIALS AND ASSISTING WITH SALES PROMOTIONAL ACTIVITIES. FINRA ALLEGED THAT THESE PAYMENTS RESULTED IN THE FIRM VIOLATING FINRA RULE 2040 AND FINRA RULE 2010.
Sanction detail — filed text
THE FIRM CONSENTED TO THE ENTRY OF A CENSURE AND TO PAY A FINE IN THE AMOUNT OF $500,000. THE FIRM PAID THIS FINE ON 1/30/2024.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) ( g g g y y ) THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) 2. Principal Sanction: Civil and Administrative Penalt(ies) /Fine(s) Other Sanctions: CENSURE 3. Date Initiated (MM/DD/YYYY): 01/25/2024 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: NO. 2020065474001 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: Insurance Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) ALLEGED THAT BETWEEN MARCH 2018 AND SEPTEMBER 2019, VOYA FINANCIAL ADVISORS, INC. (FIRM) PAID APPROXIMATELY $2.9 MILION TO AN UNREGISTERED ENTTIY IN CONNECTION WITH THE SALE OF VARIABLE UNIVERSAL LIFE INSURANCE (VUL), A SECURITIES PRODUCT. THE FIRM AND THE UNREGISTERED ENTITY WERE PARTIES TO A VARIABLE MARKETING AGREEMENT, WHICH PROVIDED THAT THE UNREGISTERED ENTITY WOULD PROVIDE A VARIETY OF SERVICES TO FACILITATE VUL SALES, INCLUDING DISTRIBUTING SALES MATERIALS AND ASSISTING WITH SALES PROMOTIONAL ACTIVITIES. FINRA ALLEGED THAT THESE PAYMENTS RESULTED IN THE FIRM VIOLATING FINRA RULE 2040 AND FINRA RULE 2010. 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Acceptance, Waiver & Consent(AWC) 11. Resolution Date (MM/DD/YYYY): 01/30/2024 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ 500,000.00 Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: THE FIRM CONSENTED TO THE ENTRY OF A CENSURE AND TO PAY A FINE IN THE AMOUNT OF $500,000. THE FIRM PAID THIS FINE ON 1/30/2024. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided). WITHOUT ADMITTING OR DENYING THESE FINDINGS, THE FIRM ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) WITH FINRA. THE FIRM FURTHER AGREED TO PAY THE MONETORY SANCTION OF $500,000 AT THE TIME THE AWC WAS ACCEPTED. FINRA ACCEPTED THE AWC ON JANUARY 25, 2024.
regulatory · block 13PDF pages 79–80
- Regulator name — filed text
- ARIZONA CORPORATION COMMISSION
- Monetary/Fine Amount — filed text
- $ 75,000.00
- How was matter resolved — filed text
- Consent
Other filed details
Description of allegations — filed text
THE ARIZONA CORPORATION COMMISSION, SECURITIES DIVISION ALLEGED THAT VFA VIOLATED ARIZONA REVISED STATUTES SECTION 44-1961(A) (12) BY FAILING TO REASONABLY SUPERVISE ITS SALESMAN. THE SALESMAN, AN EMPLOYEE OF VFA, CONDUCTED BACK-OFFICE TRANSACTIONS IN SECURITIES ON BEHALF OF PORTFOLIO MANAGERS. IN 2019, THE EMPLOYEE MOVED FROM IOWA, WHERE HE MAINTAINED REGISTRATION AS A BROKER-DEALER AGENT AND INVESTMENT ADVISER REPRESENTATIVE, TO ARIZONA. THE EMPLOYEE NOTIFIED VFA WHEN HE MOVED TO ARIZONA, AND VFA UPDATED HIS ADDRESS BY FILING AN AMENDED FORM U-4. INADVERTENTLY AND CONTRARY TO VFA'S INTERNAL POLICIES, VFA FAILED TO SELECT ARIZONA AS AN ADDITIONAL JURISDICTION IN WHICH TO SEEK REGISTRATION. THE EMPLOYEE PERFORMED HIS JOB DUTIES AS A BACK-OFFICE TRADE PROCESSOR AND FACILITATED THE EXECUTION OF SECURITIES ORDERS WITHIN OR FROM ARIZONA FROM JUNE 2019 UNTIL MAY 2024.
Sanction detail — filed text
ADMINISTRATIVE PENALTY OF $75,000 PAID ON SEPTEMBER 16, 2024.
Full extracted filing text
Includes form instructions and options. Options shown in this text do not identify which boxes were selected.
GENERAL INSTRUCTIONS This Disclosure Reporting Page (DRP ADV) is an INITIAL OR AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or 11.G. of Form ADV. Regulatory Action Check item(s) being responded to: 11.C(1) 11.C(2) 11.C(3) 11.C(4) 11.C(5) 11.D(1) 11.D(2) 11.D(3) 11.D(4) 11.D(5) 11.E(1) 11.E(2) 11.E(3) 11.E(4) 11.F. 11.G. Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page. One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP. PART I A. The person(s) or entity(ies) for whom this DRP is being filed is (are): You (the advisory firm) You and one or more of your advisory affiliates One or more of your advisory affiliates If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box. ADV DRP - ADVISORY AFFILIATE No Information Filed This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser. This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's favor. If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that occurred more than ten years ago. This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: B. If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided. Yes No NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records. PART II 1. Regulatory Action initiated by: SEC Other Federal State SRO Foreign (Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) ARIZONA CORPORATION COMMISSION 2. Principal Sanction: Civil and Administrative Penalt(ies) /Fine(s) Other Sanctions: 3. Date Initiated (MM/DD/YYYY): 09/13/2024 Exact Explanation If not exact, provide explanation: 4. Docket/Case Number: S-21319A-24-0182 5. Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable): 6. Principal Product Type: No Product Other Product Types: 7. Describe the allegations related to this regulatory action (your response must fit within the space provided): THE ARIZONA CORPORATION COMMISSION, SECURITIES DIVISION ALLEGED THAT VFA VIOLATED ARIZONA REVISED STATUTES SECTION 44-1961(A) (12) BY FAILING TO REASONABLY SUPERVISE ITS SALESMAN. THE SALESMAN, AN EMPLOYEE OF VFA, CONDUCTED BACK-OFFICE TRANSACTIONS IN SECURITIES ON BEHALF OF PORTFOLIO MANAGERS. IN 2019, THE EMPLOYEE MOVED FROM IOWA, WHERE HE MAINTAINED REGISTRATION AS A BROKER-DEALER AGENT AND INVESTMENT ADVISER REPRESENTATIVE, TO ARIZONA. THE EMPLOYEE NOTIFIED VFA WHEN HE MOVED TO ARIZONA, AND VFA UPDATED HIS ADDRESS BY FILING AN AMENDED FORM U-4. INADVERTENTLY AND CONTRARY TO VFA'S INTERNAL POLICIES, VFA FAILED TO SELECT ARIZONA AS AN ADDITIONAL JURISDICTION IN WHICH TO SEEK REGISTRATION. THE EMPLOYEE PERFORMED HIS JOB DUTIES AS A BACK-OFFICE TRADE PROCESSOR AND FACILITATED THE EXECUTION OF SECURITIES ORDERS WITHIN OR FROM ARIZONA FROM JUNE 2019 UNTIL MAY 2024. 8. Current Status? Pending On Appeal Final 9. If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed: If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only. 10. How was matter resolved: Consent 11. Resolution Date (MM/DD/YYYY): 09/13/2024 Exact Explanation If not exact, provide explanation: 12. Resolution Detail: A. Were any of the following Sanctions Ordered (check all appropriate items)? Monetary/Fine Amount: $ 75,000.00 Revocation/Expulsion/Denial Disgorgement/Restitution Censure Cease and Desist/Injunction Bar Suspension B. Other Sanctions Ordered: Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: ADMINISTRATIVE PENALTY OF $75,000 PAID ON SEPTEMBER 16, 2024. 13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within the space provided).
* Metrics are based on the latest available data, including Form ADV filings, brochures, and relationship summaries pulled from the SEC IAPD, and may be subject to change. Learn what is included in the Rialytix data. Please refer to the firm's official disclosures for the most accurate information using their CRD number. This is not investment advice.