FINRA Fines Kestra Investment Services for Overcharging Customers $1.6 Million in Mutual Fund Fees

Posted on February 22nd, 2019 at 3:14 PM
FINRA Fines Kestra Investment Services for Overcharging Customers $1.6 Million in Mutual Fund Fees

From the Desk of Jim Eccleston at Eccleston Law LLC:

FINRA has fined Austin, Texas-based broker-dealer, Kestra Investment Services LLC, a subsidiary of independent broker-dealer, Kestra Financial, $225,000 for overcharging customers $1.6 million in mutual fund fees.

According to FINRA, from 2009 through 2018, approximately 3,205 customers were overcharged fees from the sale of Class A mutual funds when Kestra should have waived the fees because they were retirement plans and charitable organization participants.

In its findings, FINRA pointed to Kestra’s lack of written guidance and improper advisor training as the main factors for its failure to apply mutual fund fee waivers for retirement plan and charitable organization participants.

As part of a consent agreement, Kestra agreed to repay the customers approximately $1.9 million and also consented to a censure.

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 investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, 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: james eccleston, eccleston law, eccleston law llc, eccleston, finra, kestra financial, mutual funds

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