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Compliance audit

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Jul 13, 2005 7:52 pm

Well I had my first compliance audit by my firm and I failed.    Here are the issues they found:

Client came in one day and wanted to open multiple 529 plans just as the bank I work in was closing. Since I didn't want to keep the bank employees in the bank two hours after closing on a Saturday, I had her fill out the full application for one creating a "template".    She signed all the blank paperwork for the other four accounts since they were identical except for the beneficiary.   Since she only had the social security numbers for 3 out of the 5 kids   I tried to help her and I asked her to bring me the info for the other 2 and the $250 checks and I will send everything out together.   Long story short I had these signed blank apps in my desk, I got audited and this is a clear violation.

Secondly, 17 year old kid comes into my branch and wants to cash out his savings bonds and invest in some mutual funds.  I fill out all the paperwork with him but inform him since he's a minor it would have to be a custodial account.   I sent him home with the intent that he would come back with his mother and a signed app.   In the interim the branch manager of the bank goes on his computer to figure out the cash value of these bonds.   He comes into my office and he realizes the kid is gone home.   I volunteer to hold onto the savings bonds since I'm anticipating him coming in and meeting with me in a few days.   

Yes, you guessed it, a get audited and this is also a violation holding a customers securities.  This was totally unintended violation but still a violation.

Lastly, in one of my bank branches they found some outdated prospectuses.  Now mind you, they are from an old broker who I took over for but since it's now my office I am responsible.  What is frustrating is that I knew this policy and threw away everything I could find whether outdated or not since I wanted to start fresh.  Obviously, I must have missed a drawer.   The prospectuses found are from companies I don't even sell which even adds to my frustration.

So, I'm in trouble.    My punishment will be anything from a written reprimand to termination.    

My short track record/reputation here is clean and even bordering on anal retentiveness when it comes to compliance.

I have clearly made some mistakes and take full responsibility.

I await my fate.

Any guesses what will happen to me?  I will keep you posted.

Jul 13, 2005 8:06 pm

As a Branch Manager with 23 years experience.....

I Predict!

Double Secret Probation!!!!!!!!!!!!!!

Jul 13, 2005 8:30 pm

You will be fired, then hung from your banks sign out front. The bank will place an ad in your local paper inviting all your customers that you put into fixed annuities to come on down and take turns beating you with a broom handle. Meanwhile, your co-workers will look upon this scene in horror from the confines of their air conditioned offices. And your branch manager will be nearby- cooking hot dogs to hand out to the 82 year old ladies who just finished whacking you with their hand bags....

Nah- just fcuking with you.. Probably a written reprimand for the first offense... If it happens again though, the above scene may become reality

Jul 13, 2005 8:51 pm


thanks for the feedback.

as you can see from other posts I have never solicited a fixed annuity sale in my 18 months in this business.

yes, 3/4 of my firm's business is fixed annuities but I always put the client first and I just don't find fixed annuities to be a good fit in most cases.

I'll keep you posted on my fate

Jul 15, 2005 6:47 pm

I live for another day:

My firm will give me one written reprimand for the items that were not compliant.

They found no intent to deceive clients in any way.


Aug 4, 2005 12:46 am

Hey Scrimdude,

Copy all of the available prospects contact and net worth info you can get your hands on in the bank. And then all of your existing clients info and call me.  I'll made you an independent and give you over 60% com's and you'll make over a years wages on just the rollovers.  Plus, I'm very forgiving on the audits.

Luv U man!