FINRA Orders $8.2 Million in Customer Restitution Over Mutual Fund Fee Errors
From the desk of Jim Eccleston at Eccleston Law
FINRA has required Edward Jones, Osaic Wealth, and Cambridge Investment Research to reimburse customers a combined total of more than $8.2 million for improperly charged mutual fund sales fees. According to AdvisorHub, the actions stem from allegations that the firms failed to provide required sales charge waivers and fee rebates to eligible customers who reinvested in funds within the same mutual fund family.
Edward Jones agreed to repay $4.4 million. Osaic Wealth, which supports approximately 11,600 advisors, paid $3 million, and Cambridge Investment Research, employing 3,300 advisors, paid just over $699,000.
The improper charges occurred between 2015 and 2020 for Edward Jones, 2017 and 2022 for Osaic, and 2015 and 2022 for Cambridge, according to FINRA settlement documents. The enforcement actions were the result of a 2020 targeted industry examination.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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