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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Mutual fund holders overcharged by banks

Service charges can be the bane of one’s experience with a financial institution. They range from simple charges for basic maintenance of an account to larger fees for specific transactions that are outside of the basic purview of the services provided. Whatever charges they are, if they are improper, the financial institution should be held liable.

This is essentially what occurred with FINRA’s latest administrative action against several large financial institutions. Wells Fargo Advisors, LLC, Raymond James Financial Services, Inc., LPL Financial LLC and a number of subsidiaries were ordered to pay restitution to customers who were improperly charged with mutual fund sales charges on certain charitable and retirement accounts. Basically, they failed to waive the customary charges on these accounts.

FINRA did not announce how many account holders were affected, but the institutions will pay out more than $30 million to affected customers.

As we have noted in prior posts, FINRA’s goal is to protect consumers from unscrupulous brokers and advisors, and in doing so, it conducts inquiries and investigations to meet these ends. However, there are instances where institutions will self-report infractions, and it appears that the institutions in this instance did just that.

Even when self-reported incidents are brought to FINRA’s attention, it is helpful for affected consumers to consult an experienced securities law attorney to gain helpful advice and guidance so that they can make informed decisions about whether to pursue further legal action or if they should move their accounts. 

The preceding is not legal advice. Consult an experienced attorney for your specific situation. 

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