Sales Charge Waivers - Are You Getting Yours?
If you are a mutual fund investor, check your mutual fund prospectus for fee waivers. Look for language such as “Waivers for Certain Investors.” For example, one prospectus I reviewed provided waivers for “an employer-sponsored retirement plan with at least 100 participants or $500,000 in plan assets.”
In July of 2015, FINRA ordered three brokerage firms to pay more than $30 million in restitution to customers for failing to waive mutual fund sales charges for certain charitable and retirement accounts. According to a FINRA release, Wells Fargo, Raymond James and LPL paid affected customers an estimated $15 million, $8.7 million and $6.3 million, respectively.
These firms are not alone. For a few other FINRA orders, see http://tinyurl.com/hp5dr9r and http://tinyurl.com/ho3uswl.
The takeaway for investors who are customers of brokerage firms is this: be informed.
This blog is an excerpt from Julie Jason's weekly column (Sept. 29, 2016). Email email@example.com for a full version.