According to the Financial Industry Regulatory Authority (FINRA) between July 1, 2009 and July 1, 2015 Securities America, an independent-broker dealer, failed to waive sales charges on mutual funds to the tune of $1.34 million.
Securities America self-reported the overcharges that affected approximately 1,500 customers and they have agreed to pay $1.54 million in restitution which includes interest charges.
FINRA stated in their report that Securities America failed to supervise sales-charge waivers over the relevant time period, and to adequately notify and train its registered reps on availability of waivers, and to adopt adequate controls to detect when reps didn’t apply waivers for eligible customers.
In May of this year, FINRA posted a notice on its website declaring a “mutual fund waiver sweep,” for which the regulator requests documents and information from broker-dealers related to waivers, or reimbursements, available to some investors for mutual fund sales charges.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on the firm and it’s representation of investors, visit https://www.whitesecuritieslaw.com.