Avantax Investment Services Inc.

02/20/2026: From January 2019 to August 2023, Avantax failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA Rule 2090, which requires member firms to use “reasonable diligence” to determine “the essential facts concerning every customer and concerning the authority of each person acting on behalf of such customer.” Specifically, with respect to accounts established under the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act (collectively, UTMA Accounts), Avantax failed to establish, maintain, and enforce supervisory systems and WSPs to track or monitor for changes in the authority of custodians of such accounts to effect transactions on behalf of the account beneficiaries. Based on the foregoing, Avantax violated FINRA Rules 3110(a), 3110(b) and 2010. Avantax has agreed to a censure and a fine of $200,000.

Reference 2023077467801finra.orgdata-portal.finra.org