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- Deutsche Bank Is Weighing Massive Cuts in Its U.S. Cash Equities Unit
- Richard Jenrette, Co-Founder of DLJ Investment Bank, Dies at 89
- Goldman Sachs Makes First Hire in Cryptocurrency Markets Unit
- Special FINRA Election to Fill Large Firm Governor Vacancy
- Chicago-Based Investment Adviser Sentenced to 151 Months in Prison - SEC
- Dun & Bradstreet Hit With FCPA Violations - SEC
- SEC Charges Additional Defendant in Fraudulent ICO Scheme
- Warren Buffett Simply Blew it on Wells Fargo Stock: Dick Bove (Video)
- Barclays and Deutsche Bank to Lag U.S. Trading Peers
- NY AG Schneiderman Seeks to Close Loophole That Could Let Trump Pardons Block State Charges
- 'Fearless Girl' is Moving to NYSE After Year Staring Down 'Charging Bull'
- What's In Your Wallet - American Express Shares Soar After Earnings Release
- Deutsche Bank's Executive Departures Continue Following Change in CEO
- Reflections of an Economist Commissioner (SEC's Piwowar)
- Billionaire HF Manager and The Fed Chair Runner-Up are Investing in New Cryptocurrency
- Court Finds 2 Brokers Liable for Fraud Involving Mortgage-Backed Securities
- One FINRA: An Organization’s Commitment to Diversity and Inclusion
- 2018 GASB Accounting Support Fee to Fund the Governmental Accounting Standards Board
- Barclays Eyes Move Into Cryptocurrency Trading
- Goldman Breaks From Wall Street Pack with Bond-Trading Boom
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NEWSLETTERS & ALERTS
FINRA ‘Mutual Fund Waiver Sweep’ – Part 3
by Howard Haykin
While FINRA ordered each of the 12 broker-dealers to compensate impacted customers for actual estimated excess sales charges and 12b-1 fees – totaling nearly $11 million, plus pre-judgment interest – only 3 of the firms were hit with fines, totaling $195,000.
- Investment Centers of America ($60,000);
- National Planning Corp. Investment Centers of America ($60,000);
- SII Investments ($75,000).
What did these 3 firms do to warrant fines in addition to the orders to pay restitutions and pre-judgment interest? Apparently, NOTHING!
Fact is, FINRA praised these 3 firms, as well as the other 9 firms, in each respective AWC Letter with the following notation [bold emphasis provided by Financialish]:
In resolving this matter, FINRA has recognized the extraordinary cooperation of [Firm Name] for having:
(1) initiated, prior to detection or intervention at the Firm by a regulator, an investigation to identify whether Eligible Customers received sales charge waivers during the relevant period;
(2) promptly established a plan of remediation for Eligible Customers who did not receive appropriate sales charge waivers;
(3) promptly self-reported to FINRA;
(4) promptly taken action and remedial steps to correct the violative conduct; and,
(5) employed subsequent corrective measures, prior to detection or intervention at the Firm by a regulator, to revise its procedures to avoid recurrence of the misconduct.
FINANCIALISH TAKE AWAYS. The only apparent mistake these 3 firms made was to be the first firms caught by FINRA with having “cheated” retirement plan and charitable organization customers on Mutual Fund Fee Waivers. In my opinion, these firms' cases should have been handled in a similar manner in which FINRA handled the latter 9 cases - even if means retroactive reversal of fines.
Would you seek reimbursement from FINRA for if your firm had been unfairly sanctioned?
Shouldn't firms have the right to seek (partial) reversal of sanctions if, in the months following their AWC Letters, they learned that others were held to a different standard?
Financialish.com believes the above 3 firms have rights and a valid argument. It's up to them to exercise those rights.