Between at least 2018 and at least February 2024, First Trust provided non-cash compensation (e.g., gifts, meals, and entertainment) to representatives of retail broker-dealers that sell First Trust investment company securities (Client Firms) in amounts that significantly exceeded FINRA limits, and in certain instances provided non-cash compensation reconditioned on Client Firm representatives achieving sales targets.

Between September 2019 and May 2022, Supreme Alliance failed to establish and maintain a supervisory system and written supervisory procedures reasonably designed to supervise recommendations of purchases and exchanges of deferred variable annuities and supervise the conduct and documentation of investigations into newly hired registered representatives for compliance with FINRA Rule 3110(e). Further, the firm failed to surveil for inappropriate rates of variable annuity exchanges.

From at least December 2017 to March 2022, Interactive Brokers failed to provide certain of its customers with a consolidated display containing all required market data elements at the point of order entry on its trading platforms. As a result, the firm violated Rule 603(c) of Regulation National Market System (NMS) under the Securities Exchange Act of 1934 and FINRA Rule 2010.