HomeLife InsuranceSEC Hits Wisconsin BD With Reg BI Nice

SEC Hits Wisconsin BD With Reg BI Nice


Those written insurance policies and procedures “did not adequately deal with Hennig’s Battle of Hobby Legal responsibility as a result of, amongst different issues, they didn’t supply any steerage or procedures for a way the company was once to succeed in the ones objectives,” the SEC stated.

In January 2021, after an exam by means of the Monetary Trade Regulatory Authority, FINRA asked that Hennig take motion to replace and right kind its written insurance policies and procedures associated with Reg BI.

When the SEC’s Department of Examinations tested Hennig in June 2021, “Hennig had now not but taken motion enough to convey its written insurance policies and procedures” into compliance with Reg BI, the order states.

In consequence, in Would possibly 2022, the SEC issued a deficiency letter to Hennig noting that Hennig’s written insurance policies and procedures nonetheless did not agree to Reg BI.

In January 2023, Hennig followed new written insurance policies and procedures associated with Reg BI, together with written insurance policies and procedures associated with its war of hobby legal responsibility, disclosure legal responsibility, and care bligation.

Shape CRS Disasters

From their adoption in June 2020 thru January 2023, Hennig’s written insurance policies and procedures associated with its Disclosure Legal responsibility mentioned that Hennig’s Shape CRS would “deal with all to be had services and products Hennig provides thru its brokerage accounts and advisory platforms and the charges related to each.”

The order states that Hennig additional disclosed in its Shape CRS that the “number one charges” paid by means of the shoppers for brokerage services and products are “transaction-based charges … normally known as commissions, gross sales fees, rather a lot, promoting concessions, or trails.”

Alternatively, “Hennig’s written insurance policies and procedures weren’t quite designed to supply additional info past that mentioned in its Shape CRS to its consumers,” the SEC stated.

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