According to the Financial Industry Regulatory Authority (FINRA), Securities America Inc. (CRD# 10205 / SEC# 8-26602) has agreed to pay $1.54 million to eligible customers who did not receive mutual fund sales charge waivers, despite being qualified for the waivers.
An estimated 1,500 customers were affected between July of 2009 and July of 2015. The overcharges resulted in approximately $1.39 million in additional fees for the customers; the final restitution of $1.54 million included interest payments.
Securities America self-reported the overcharges to FINRA after initiating an internal investigation to determine whether or not eligible customers received their mutual fund sales charge waivers, and quickly took steps to correct the conduct that lead to the violation.
FINRA began to target mutual fund overcharges back in May when they requested information and documents from brokerage firms so they could conduct a targeted exam. In the notice sent out by FINRA, they stated that:
“This inquiry should not be construed as an indication that FINRA or its staff has determined that any violations of federal securities laws or FINRA, NASD, NYSE, or MSRB rules have occurred.”
Securities America is the tenth broker-dealer ordered to pay restitution for failing to offer or provide sales charge waivers to eligible accounts. The largest payment ordered as from Wells Fargo for $15 million.
If you were not offered or provided a mutual fund sales charge waiver despite being eligible for one, contact the securities fraud at Meyer Wilson today. We handle all cases on a contingency fee basis, so you won’t owe any legal fees unless we help you recover your losses.
Recovering Losses Caused by Investment Misconduct.