Post by Logan on Jul 5, 2016 22:49:22 GMT -6
Baird to repay customers $2.1 million for mutual fund fee overcharges
Robert W. Baird & Co. Inc. will pay about $2.1 million in restitution to approximately 1,400 accounts for overcharges related to mutual fund fees, according to a settlement with the Financial Industry Regulatory Authority, or FINRA.
Milwaukee-based Baird discovered the overcharges during a review in May 2015 and reported to FINRA that it believed the customers had not received sales charge waivers for which they were eligible. The customers involved were retirement accounts and charitable groups, the regulator said.
Baird failed to "reasonably supervise" the application of sales charge waivers for mutual fund sales to certain customers, relying on its financial advisors to determine whether such charges applied, FINRA said. The problem started in July 2009, it said.
In the document summarizing the case, FINRA recognized Baird's "extraordinary cooperation" for initiating the review, reporting the situation to regulators, promptly establishing a plan to reimburse customers with interest and taking corrective actions.
Read more: www.jsonline.com/business/baird-to-repay-customers-21-million-for-mutual-fund-fee-overcharges-b99756354z1-385569521.html
Robert W. Baird & Co. Inc. will pay about $2.1 million in restitution to approximately 1,400 accounts for overcharges related to mutual fund fees, according to a settlement with the Financial Industry Regulatory Authority, or FINRA.
Milwaukee-based Baird discovered the overcharges during a review in May 2015 and reported to FINRA that it believed the customers had not received sales charge waivers for which they were eligible. The customers involved were retirement accounts and charitable groups, the regulator said.
Baird failed to "reasonably supervise" the application of sales charge waivers for mutual fund sales to certain customers, relying on its financial advisors to determine whether such charges applied, FINRA said. The problem started in July 2009, it said.
In the document summarizing the case, FINRA recognized Baird's "extraordinary cooperation" for initiating the review, reporting the situation to regulators, promptly establishing a plan to reimburse customers with interest and taking corrective actions.
Read more: www.jsonline.com/business/baird-to-repay-customers-21-million-for-mutual-fund-fee-overcharges-b99756354z1-385569521.html