Cetera Advisor Firms to Pay $2.5M in Restitution to Eligible Customers

Posted on August 2nd, 2017 at 1:34 PM
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.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, Cetera, Advisor

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I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.


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