First Horizon Advisors has agreed to pay a fine of $175,000 to resolve FINRA allegations that the firm of failed to investigate red flags raised by a former broker who caused clients significant losses. The settlement comes more than five years after the alleged supervisory failures and about six weeks after its parent firm unveiled a merger with TD Bank Group.
TD Bank Group is acquiring First Horizon's parent for $13.4 billion in cash, a deal that would create one of the six largest banks in the U.S., with about $615 billion in assets, according to FinancialPlanning.com. TD Bank Group agreed to add an additional 65 cents a share to the purchase price of $25 per stock unit if the transaction does not close by November 27, according to the reported terms of the deal.
A former SEC enforcement official states that "it is routine to discuss any ongoing regulatory matters involving the seller with the buyer sometimes asking the incoming firm to address them before the close of the transaction or to set aside money to pay for them."
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