The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Finra Smites Five More B-Ds Over Un-Waived A Shares Loads Not Rated 4.0 Email Routing List Email & Route  Print Print
Friday, August 25, 2017

Finra Smites Five More B-Ds Over Un-Waived A Shares Loads

News summary by MFWire's editors

Three years in, Finra continues to smite broker-dealers over un-waived A shares loads. This time its five Cetera Financial Group B-Ds in hot water, though not as hot as it could have been.

On Monday the regulatory agency unveiled settlements (totaling $3.3 million) with: Cetera Financial Specialists, Cetera Investment Services, First Allied Securities, Girard Securities (which is shutting down and shifting to be a piece of another Cetera B-D, Cetera Advisor Networks), and Summit Brokerage Services. Back in May Finra unveiled a similar settlement with Cetera Advisor Networks. All five new settlements involve only restitution, as Cetera IDed the problem internally and reported it to Finra.

InvestmentNews covered the settlements.

The new Cetera settlements (in which the B-Ds neither admitted nor denied the allegations) are over a now-familiar Finra issue in recent years: retirement plan and charity customers who were eligible for load-waived A shares but whose FAs instead sold them A shares with loads (or back-end load B shares or higher trail C shares). That same issue led Finra three years ago to hit Merrill with a $8 million fine, plus ordered $64.8 million in restitution. Since then numerous B-Ds have faced similar issues, with many of them responding like the Cetera firms by voluntarily reporting the problem and paying restitution in exchange for avoiding fines.  

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use