Cetera Advisor Firms to Pay $2.5M in Restitution to Eligible Customers
From the Desk of Jim Eccleston at Eccleston Law LLC:
FINRA has fined both Cetera Advisor Networks and Cetera Advisors allegedly for charging retirement plan customers excessive mutual fund sales charges when they were eligible to purchase shares in certain mutual funds with fee-waivers.
More specifically, even though certain retirement plan and charitable organizations customers were eligible for mutual fund sales-charge waivers, eligible customers were sold Class A shares with a front-end sales charge or Class B or C shares with a back-end sales charge and higher ongoing fees and expenses. Moreover, it is estimated that eligible customers of Cetera Advisor Networks were overcharged at least $1,666,404 for mutual fund purchases made since July 1, 2009 and eligible Cetera Advisors customers were overcharged at least $553,398 for mutual fund purchases made since July 1, 2009.
Without admitting or denying the findings, both firms consented to the sanctions. As part of the settlement, Cetera Advisor Networks agreed to pay $1,666,404 in restitution to eligible customer and Cetera Advisors agreed to pay $628,040 in restitution to eligible customers.
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