Thrivent Investment Management Fined $325K

In a recent article from Think Advisor, we learn that the Financial Industry Regulatory Authority (FINRA) has censured and fined Thrivent Investment Management, $325,000 for failing to establish and maintain a supervisory system to detect electronic signature forgery or falsification.

According to FINRA’s order, from July 2017 to the present, approximately 15 Thrivent registered representatives allegedly electronically signed client’s names on over 260 documents, including documents that were required books and records of the firm.

According to an article in the DI Wire, FINRA also stated that because Thrivent’s supervisory procedures did not adequately address the use of electronic signatures or provide clear guidance to supervisors on identifying potential forgeries or falsifications, the firm allegedly did not investigate potential red flags, including instances where representatives sent documents to their own email addresses or used their own phone numbers for authentication codes.

Thrivent representatives “were able to electronically sign documents and to obtain electronic signatures from customers remotely, by emailing customers a link to documents that the customers could electronically sign,” according to the FINRA order.

The FINRA order states that “After an individual electronically signed a document, Thrivent would receive a certificate of completion identifying, among other things: the email address that sent and received the document, the cell phone number used to receive authentication codes to access documents, and the Internet Protocol (IP) addresses of devices used to electronically sign documents.”

Thrivent’s written supervisory procedures required representatives to obtain authentic customer signatures on firm documents.

FINRA stated that “Thrivent’s WSPs did not, however, include any procedure to supervise use of electronic signatures or provide reasonable guidance to supervisors on what they should look for in attempting to assess whether an electronic signature was genuine.”

According to the DI Wire, FINRA clarified that the falsifications and forgeries were not carried out to facilitate unauthorized activities, and no customer harm or complaints were reported. Thrivent’s actions were in violation of several FINRA rules, including Rule 3110, which mandates firms to establish and maintain a supervisory system to ensure compliance with securities laws and regulations. In addition to the fine, Thrivent agreed to a censure and to undertake remedial measures.

If you’ve experienced investment losses due to the actions or recommendations of Thrivent Investment Management, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basis.