FINRA has fined 25 broker/dealers for failure to complete self-assessments related to providing mutual fund breakpoints between 2001 and 2002.
As a result, FINRA said, about one-third of every fund transaction that would have been eligible for a discount did not receive one. The firms also failed to report breakpoint information to FINRA and to respond to customers inquiries regarding the discounts.
"FINRA is hindered in carrying out its regulatory mission when firms fail to adequately self-assess their conduct and report the results accurately and in a timely manner," said Susan L. Merrill, FINRA executive vice president and chief of enforcement. "Today's settlements are a clear message that when firms are required to perform self-assessments, FINRA demands that they be diligent and fully compliant."
All 25 firms settled these matters without admitting or denying the findings, but consented to the entry of FINRA's findings.