("Five Broker-Dealers Fined $1.65M For Sales Issues," published at 1:07 p.m. EDT, incorrectly identified McDonald Investments' current owner. A corrected story appears below.)

 
   DOW JONES NEWSWIRES 
 

The Financial Industry Regulatory Authority fined five bank broker-dealers a combined $1.65 million for deficient supervision and procedures related to the sale of variable annuities, mutual funds and unit investment trusts.

Brokers at each of the firms operated out of branches of affiliated banks, selling the products primarily to the elderly, said Finra. The customers were referred by bank personnel and sales of the products represented a significant portion of each firm's business.

"Today's actions underscore the need for firms operating bank branches to have effective systems and procedures in place to monitor sales of variable annuities, mutual funds, and UITs," said Finra enforcement chief Susan Merrill.

The biggest fine was $450,000 for IFMG Securities, which was purchased in 2007 by LPL Financial, a broker/dealer which supports more than 12,000 financial advisers. Others fined included McDonald Investments, now part ofUBS AG (UBS), which received a $425,000 fine. Also sanctioned were Wells Fargo & Co. (WFC) with a $275,000 fine, while PNC Financial Services Group Inc. (PNC) and J.P. Morgan Chase & Co. (JPM) were each fined $250,000.

In settling each of these matters, none of the firms admitted or denied the charges, but consented to the entry of Finra's findings.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com