Kestra Financial fined $225,000, will repay $1.9 Million to investors.
According to the Financial Industry Regulatory Authority (FINRA), the regulator has censured and fined Kestra Financial $225,000 and is required to pay $1.9 million in restitution for allegedly overcharging more than 3,200 mutual fund investors over a nine-year period.
According to a Letter of Acceptance, Wavier & Consent, FINRA reached a settlement with the independent broker-dealer for its alleged failure to apply fee waivers on certain mutual funds that were sold to customers between July 1, 2009 and Feb. 22, 2018.
Further, FINRA found that between October 2013 and June 2014, “Kestra failed to reasonably supervise its registered representatives’ recommendation and sale to its customers of $52 million in L-share class variable annuities.”
For FINRA’s full findings see FINRA case number NO. 2016048404601.
Failure to Supervise
The White Law Group is investigating potential claims involving the liability that Kestra Financial may have for failure to supervise its registered representatives.
Under FINRA rules and regulations, Broker-Dealers are responsible for supervising the actions of those advisors registered with their firm, and therefore may be held liable for the actions of their Broker(s).
If you are concerned about investments made with Kestra Financial, the securities fraud attorneys at The White Law Group may be able to help you.
For a free case evaluation or to discuss any other investment losses, please contact The White Law Group, at 888-637-5510, or visit us on the web at www.whitesecuritieslaw.com.
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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.