Woodbury Financial Services, Inc., with a principal place of business in Oakdale, Minnesota, has accepted a fine and censure from FINRA, and has agreed to payment of restitution to customers relating to the sale of Unit Investment Trusts (“UITs”).
According to the Letter of Acceptance, Waiver and Consent (“AWC”) between Woodbury and FINRA, “From May 1, 2009 to April 30, 2014, the Firm failed to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”). . . . In addition, the Firm failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to ensure that customers received” the discounts.
As detailed in the AWC, a “UIT is a type of Investment Company that issues securities, typically called ‘units,’ representing undivided interests in a relatively fixed portfolio of securities. UITs are generally issued by a sponsor that assembles the UIT’s portfolio of securities, deposits the securities in a trust, and sells units of the UIT in a public offering. UIT units are redeemable securities that are issued for a specific term, and entitle an investor to receive his or her proportionate share of the UIT’s net assets on redemption or at termination.”
Woodbury will pay a $100,000 fine and will pay restitution of $98,937.31 to affected customers.
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