The Financial Industry Regulatory Authority (FINRA) has ordered the wealth-management units of Wells Fargo, Raymond James Financial and LPL Financial to pay over $30m in restitution to clients allegedly overcharged on mutual-fund sales.
According to a news release from FINRA, Wells Fargo will have to pay about $15m, Raymond James $8.7m and LPL Financial $6.3m and other fees.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The regulator said that these firms failed to adequately supervise the sale of mutual funds that offered sales charge waivers.
"The firms unreasonably relied on financial advisors to waive charges for retirement and eligible charitable organization accounts, without providing them with critical information and training," Wall Street’s self-regulator said.
In concluding these settlements, the three brokerage firms neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.
FINRA chief of enforcement Brad Bennett said: "In this case, FINRA is ordering meaningful restitution to adversely affected investors consistent with our commitment to ensure that mutual fund investors get the full benefit of available fee and expense reductions.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"While Wells Fargo, Raymond James and LPL failed to ensure that customers received these discounts, FINRA’s sanctions acknowledge that the firms detected and self-reported these errors, and will provide full restitution to customers."
