First Trust Portfolios L.P.

11/03/2025: Between at least 2018 and at least February 2024, First Trust provided non-cash compensation (e.g., gifts, meals, and entertainment) to representatives of retail broker-dealers that sell First Trust investment company securities (Client Firms) in amounts that significantly exceeded FINRA limits, and in certain instances provided non-cash compensation reconditioned on Client Firm representatives achieving sales targets. During the same period, First Trust wholesalers falsified internal expense reports relating to non-cash compensation provided to Client Firm representatives, and First Trust sent Client Firms false information concerning the value, nature, and frequency of non-cash compensation provided. Finally, the Firm failed to establish, maintain, and enforce a system reasonably designed to achieve compliance with non-cash compensation rules and expense-related recordkeeping requirements. As a result, First Trust violated FINRA Rules 2010, 2341, 3110, and 4511, as well as Section 17(a) of the ...

Reference 2020066123602data-portal.finra.orgfinra.org