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

More firms to pay restitution over improper fees

In a prior post, we highlighted how the Financial Industry Regulatory Authority ordered several financial institutions to pay restitution to customers who were charged mutual fund sales charges for transfers on certain charitable and retirement accounts. The restitution that would be paid would be more than $55 million, and more than 75,000 eligible accounts were affected.

With such a large number of accounts affected, it would seem that other financial institutions would take notice so that they would not run afoul of this transgression as well. However, it appears that they have not taken heed to this warning. 

FINRA recently ordered another group of financial institutions to pay restitution to customers for similar failures. According to a recent announcement, Edward Jones & Co., Stifel Nicholaus & Company, AXA Advisors and Stephens, Inc. will all pay restitution to customers who were charitable organizations and those with qualified retirement accounts.

For the uninitiated, mutual funds come with different classes of shares; which garner different charges and fees. For instance, Class A shares come with lower fees and costs. However, initial customers typically still pay a fee. Despite this, many mutual funds waive these upfront fees for certain retirement accounts and charities.

Even with a restitution order, there is still a process to be followed for customers to receive their money. This is where an experienced securities fraud attorney can give the proper guidance and advice for those who have been charged unfairly for initiating accounts with financial management agencies.

If you have additional questions about how restitution works, an experienced lawyer can help. 

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