Mutual fund restitution overview:
- Who: The Financial Industry Regulation Authority (FINRA) ordered Edward Jones, Osaic Wealth Inc. and Cambridge Investment Research Inc. to pay more than $8.2 million in restitution to their customers.
- Why: FINRA says the firms failed to provide available mutual fund sales charge waiver fees and fee rebates for mutual fund purchases.
- Where: The restitution order affects certain consumers nationwide.
The Financial Industry Regulation Authority (FINRA) ordered Edward Jones, Osaic Wealth Inc. and Cambridge Investment Research Inc. to pay more than $8.2 million in restitution.
The funds will benefit mutual fund customers injured by the firms’ failure to provide available mutual fund sales charge waiver fees and fee rebates for mutual fund purchases, according to the private self-regulatory organization.
FINRA noted it did impose any fines against Edward Jones, Osaic Wealth or Cambridge Investment Research in recognition of their “extraordinary cooperation” with its investigations.
“Obtaining restitution for harmed customers is a top priority for FINRA. It is essential that firms ensure their customers receive all fee waivers and rebates owed,” said Bill St. Louis, Executive Vice President and Head of Enforcement at FINRA, in a statement.
Edward Jones, Osaic Wealth and Cambridge Investment Research are not admitting to or denying the charges against them by agreeing to settle the matter, according to FINRA.
Mutual fund restitution decision result of targeted examination
The restitution order is the result of a 2020 targeted examination conducted by the Member Supervision’s Examinations and National Cause and Financial Crimes Detection programs, FINRA says.
The organization said the firms each failed to “establish and maintain a supervisory system reasonably designed to supervise whether eligible customers received available mutual fund sales charge waivers and fee rebates through rights of reinstatement.”
The alleged issue caused Edward Jones customers to pay more than $4.4 million in excess sales charges and fees, while Osaic Wealth and Cambridge Investment Research customers paid more than $3 million and nearly $700,000, respectively, according to FINRA.
The agency said it has secured more than $9.5 million in restitution for “affected mutual fund customers” across a total of five firms.
In other recent settlement news, The Federal Trade Commission sent more than $72 million in payments earlier this month to nearly 630,000 Fortnite players who were charged for unwanted purchases and filed a valid claim form by Oct. 8.
Are you an Edward Jones, Osaic Wealth or Cambridge Investment Research customer who paid excess sales charges and fees? Let us know in the comments.
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21 thoughts onFirms to pay $8.2M restitution to mutual fund customers
Edward Jones client being conned by what I will call a “rogue” advisor. My case is so obvious that even I, a naive (that’s changing rapidly) and all but financially illiterate client, saw glaring, flashing red flags. I have been introduced to an apt term, “churning” in respect to my account by two astute men in my life whom I wish I’d asked to help me sooner. I was far too trusting, thinking every ‘professional’ had clients’ best interests at heart the way I have always conducted myself professionally. Please add me on. I’ve been an EJ investor who has been awakened from a slumber with now wide open eyes. My learning curve is suddenly steep.
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Please add me to the action! Edward Jones screwed me over!
Yes. Me
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I’m with Edward jones. Add me.
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Add me and my spouse