FINRA has fined two Wachovia units $4.5 million for failing to pass along breakpoint and rollover discounts for mutual fund and unit investment trust purchases, as well as for suitability violations and inadequate supervisory procedures.
As per the settlement, Wachovia has returned $2.4 million to mutual fund investors and $3 million to unit investment trust investors.
Firms must consider all relevant factors when recommending securities, said FINRA Executive Vice President and Chief of Enforcement Susan L. Merrill. The failure to provide available discounts or recommend a suitable share class wrongly increases costs to investors. We are pleased that through these settlements, millions of dollars are being returned to customers.