Gfo Advisory Services, Llc

Allegations: THE SEC'S FINDINGS, INFORMED BY THE SELF-DISCLOSURE OF [TSI/TIS] AND ITS CONTROL AFFILIATES [TIS/TSI] AND TAS (COLLECTIVELY, "TRUIST"), INCLUDED THAT CERTAIN TRUIST EMPLOYEES COMMUNICATED ABOUT TRUIST'S BROKER DEALER AND INVESTMENT ADVISOR BUSINESSES USING UNAPPROVED, OFF-CHANNEL METHODS, INCLUDING PERSONAL TEXT MESSAGES. THESE COMMUNICATIONS WERE NOT MAINTAINED AND PRESERVED BY TRUIST PURSUANT TO RECORDKEEPING REQUIREMENTS. THE CFTC'S FINDINGS, INFORMED BY THE SELF-DISCLOSURE OF [TSI/TIS]'S CONTROL AFFILIATE TRUIST BANK, WERE SUBSTANTIALLY SIMILAR. Status: Final Sanction Detail: UNDER THE SEC ORDER, [TSI/TIS] AND ITS NAMED AFFILIATES [TIS/TSI] AND TAS JOINTLY AND SEVERALLY PAID A CIVIL PENALTY OF $5.5 MILLION ON [DATE OF PAYMENT], AND AGREED TO, AMONG OTHER THINGS, RETAIN A COMPLIANCE CONSULTANT TO REVIEW AND REPORT ON FIRM POLICIES AND PROCEDURES RELATING TO THE USE AND PRESERVATION OF ELECTRONIC COMMUNICATIONS. UNDER THE CFTC ORDER, TRUIST BANK PAID A CIVIL PENALTY OF $3 MILLION ON AUGUST 21, 2024, AND AGREED TO UNDERTAKE A SIMILAR COMPLIANCE REVIEW. Summary: ON AUGUST 14, 2024, TRUIST BANK CONSENTED TO ENTRY OF A CFTC ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS AND IMPOSING REMEDIAL ACTIONS, FOLLOWING ITS IDENTIFICATION AND SELF-DISCLOSURE OF SUBSTANTIALLY SIMILAR CONDUCT, RESULTING IN VIOLATIONS OF SECTIONS 4S(F)(1)(C) AND 4S(G)(1) AND (3) OF THE COMMODITY EXCHANGE ACT AND REGULATIONS 1.31, 23.201(A), 23.202(A)(1) AND (B)(1), AND A FAILURE TO DILIGENTLY SUPERVISE MATTERS RELATING TO ITS BUSINESS AS A CFTC REGISTRANT WITHIN THE MEANING OF SECTION 4S(H)(1)(B) AND REGULATION 23.602(A). TRUIST BANK CONSENTED TO PAY A PENALTY OF $3 MILLION AND TO COMPLY WITH CERTAIN UNDERTAKINGS.