First Trust Fined $10 Million by Finra Over Lavish Gift Claims

The Financial Industry Regulatory Authority fined First Trust Portfolios LP $10 million, saying the firm gave clients expensive gifts such as courtside basketball games and hockey playoff tickets to secure their business.

The Wheaton, Illinois-based firm “significantly exceeded” Finra limits on meals and entertainment from at least 2018 to February 2024, the Wall Street regulator said Monday. Finra said the firm, which is one of the largest issuers of US ETFs, also falsified internal expense records, including submitting reports with dead people as attendees.

First Trust, which didn’t admit to or deny the allegations as a part of the settlement, ...