FINRA Fines IFP Securities $100,000 Over Supervisory Failures and Reg BI Compliance Lapses

The U.S. Financial Industry Regulatory Authority (FINRA) has fined IFP Securities, LLC $100,000 over supervisory failures related to mutual fund and unit investment trust (UIT) transactions.

According to FINRA, IFP’s written supervisory procedures required daily reviews of certain transactions to ensure compliance with Regulation Best Interest (Reg BI). However, the firm’s automated surveillance system failed to properly generate key trading alerts for most of the period between November 2022 and November 2025.

The issue reportedly began after a vendor change in November 2022. Since then, the system failed to detect activities such as short-term mutual fund trading, early UIT sales, and rapid reinvestments. Although IFP worked with its vendor to resolve the problem, the system was not fully restored until 2025.

FINRA stated that the firm did not implement alternative supervisory measures during the three-year gap, resulting in thousands of transactions not being properly reviewed for Reg BI compliance.

As part of the settlement, IFP accepted a censure in addition to the $100,000 fine.

Public records show that IFP Securities has been a FINRA member since February 2019. The Florida-based firm operates approximately 140 branch offices and employs around 290 registered representatives.