Finra has been focusing on firms selling mutual fund shares with front- or back-end sales charges to customers who were eligible to receive sales charge waivers, according to the report, adding that since a number of firms have self-reported on this issue recently, the fines for mutual fund cases have been fairly low.
Finra reported 37 senior and retiree cases accounting for a total of $558,000 in fines during the first half of 2017. In the same period in 2016, Finra reported $37,500 in fines emanating from 11 cases, and full-year 2016 totals were $3 million in fines from 27 cases.
The report’s authors identify senior and retiree cases as another area of emphasis for Finra as the industry grapples with concerns about financial exploitation and the objectivity of retirement investment advice.
Disclosures cases, encompassing forms U4/U5/3070, resulted in $1.2 million in fines from 57 cases. In the same period in 2016, Finra reported 55 cases resulting in $720,000 in fines. In 2016, a total of 134 cases created $6 million in fines. According to the authors, these cases most often stem from failures to disclose tax liens, bankruptcies, criminal histories and other events on a registered representatives Form U4.
Finra didn't respond to requests for comment.