Thrivent Investment Management has come under regulatory scrutiny and has faced multiple complaints related to potential conflicts of interest and inadequate oversight. This article outlines the regulatory concerns and complaints involving Thrivent, offering insight into how its practices may have negatively impacted investors.
If you or someone you know has suffered significant investment losses working with Thrivent Investment Management or another brokerage firm, don’t hesitate to reach out to Meyer Wilson today. Our attorneys are experienced in securities fraud cases and will help to guide you through the process with a free consultation to determine whether your losses are the result of actionable misconduct.
Thrivent’s Business Model and the Risks for Investors
Dual Roles That Can Create Conflicts
Thrivent Investment Management Inc. (CRD#: 18387), headquartered in Minneapolis, Minnesota, operates as both a broker-dealer and an investment adviser. While this dual registration allows it to provide both trading execution and financial advice, it also opens the door to conflicts of interest—particularly when advisors are incentivized to sell specific products.
- Commission-based compensation: Thrivent’s financial advisors often receive higher commissions for certain investment products, which may influence recommendations.
- Product sales over client fit: Some advisors may recommend investments that generate more income for themselves or the firm, even when better alternatives exist.
- Complex fee layers: Investors may be subject to a mix of management fees, commissions, and charges tied to specific products like mutual funds and annuities.
These structures can compromise the objectivity of advice and may lead investors to unknowingly accept higher-cost or less appropriate products.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Regulatory Actions Against Thrivent Investment Management
SEC Findings: Costlier Mutual Fund Recommendations
From 2020 to 2022, Thrivent’s brokers were found to have recommended Class A mutual fund shares in state-sponsored 529 education savings plans without considering whether lower-cost Class C shares were more suitable. This violated Regulation Best Interest (Reg BI), which requires brokers to act in the best interests of retail customers.
- Investors paid higher upfront fees due to unsuitable share class recommendations.
- $220,000 in restitution was paid to 846 impacted clients, in addition to a $25,000 civil penalty.
- Failure to assess costs reflected a broader issue of disregarding client outcomes in favor of firm revenue.
These actions highlight the real-world financial harm investors can face when firms do not live up to regulatory expectations. For more information on Reg BI, check out our video below:
FINRA Penalties: Forged Signatures and Oversight Failures
In another case, FINRA fined Thrivent $325,000 after finding that 15 of its registered representatives had electronically signed customer names on over 260 documents. The firm failed to detect these forgeries for years, exposing deep flaws in its supervisory system.
- Lack of detection tools meant violations went unnoticed.
- Violations of FINRA Rule 3110, which mandates supervision of broker activities.
- Increased risk to investors: Forged documentation can undermine account security and investor trust.
For affected investors, these failures are more than just technical violations—they may represent a breach of trust and potential losses.
What to Do If You’ve Been Affected by Thrivent’s Practices
For those that have been impacted by poor recommendations, forged signatures, or excessive fees while working with Thrivent Investment Management, legal options may exist. Investors harmed by these practices are often eligible to seek recovery through arbitration or other legal remedies.
If you or someone you know has been a victim of losses through Thrivent Investment Management, contact our team at Meyer Wilson today. With over 20 years of experience and $350 million in recovered losses for our clients, we are well-versed in handling cases such as these.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
What Are the Main Complaints Against Thrivent Investment Management?
Thrivent has been fined by both the SEC and FINRA for:
- Recommending costlier mutual fund share classes that were not in investors’ best interests.
- Failing to detect forged client signatures across hundreds of documents.
These issues point to significant compliance lapses and conflicts of interest.
How Can Conflicts of Interest Affect My Investments?
Conflicts of interest occur when a financial advisor stands to gain more by recommending one product over another. At firms like Thrivent, this can lead to:
- Biased investment advice.
- Higher costs passed onto the investor.
- Subpar investment performance over time.
Understanding these risks is key to protecting your financial future, especially if you’ve already suffered unexpected losses.
Recovering Losses Caused by Investment Misconduct.
