Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on August 31, 2018 indicate that Ohio-based broker-dealer and advisory firm Key Investment Services has received a regulatory sanction. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Key Investment Services (CRD# 10111).
Established in Ohio in 2005, Key Investment Services is registered in Brooklyn, Ohio and registered with 51 US states and territories. The firm is owned by Keybank National Association. According to its BrokerCheck report, it has received one regulatory sanction.
In 2016 FINRA sanctioned the firm in connection to allegations it failed to identify and apply certain sales charge discounts to some clients’ eligible unit investment trust purchases, causing those clients to pay “excessive sales charges” that exceeded $95,200. FINRA’s findings stated additionally that Key Investment Services failed in its duty to establish, maintain and enforce a supervisory system, as well as written supervisory procedures, that were adequately designed to make sure customers were given those discounts on eligible unit investment trust transactions. According to FINRA’s letter of Acceptance, Waiver and Consent, FINRA issued a notice in 2004 that reminded broker dealers to “develop and implement procedures to ensure customers receive available sales charge discounts for UITs.” This notice stated additionally that such transactions should have “the most advantageous terms available to the customer” and specified that the firm was responsible for taking “appropriate steps to ensure that they and their employees understand, inform customers about, and apply correctly any applicable price breaks” for which clients are eligible. The firm was censured and issued a fine of $100,000; it was also ordered to pay restitution totaling $100,247.02 to affected customers.