The allegations read: The south carolina attorney general ("scag") conducted an investigation regarding potential violations of s.c. Code ann. Section 35-1-101 et seq. ("south carolina securities act") regarding allegations that registered representatives from the lexington, south carolina branch office (the "cfi rrs") recommended variable interest rate structured products ("vrsps") and corporate bonds to retail customers for which an appropriate overall evaluation of the financial profile was not conducted.
the registered representative, in his capacity as branch manager, allegedly failed to reasonably supervise and document his review of recommendations, purchases and sales of vrsps made by cfi rrs to certain retail customers.
additionally, the registered representative, in his capacity as branch manager, allegedly failed to reasonably follow his broker/dealers then existing customer-specific suitability review procedures.
