Finra has censured Questar Capital, saying that it failed to identify and apply available sales charge waivers to eligible retirement accounts and charitable organizations. The firm agreed to pay $796,892 in restitution to clients.
The Financial Industry Regulatory Authority Inc. also ordered Questar to develop a plan to provide remediation to the eligible clients who qualified for, but did not receive, the applicable mutual fund sales charge waivers.
Finra's letter of acceptance, waiver and consent said that the sales activity under question took place from Jul 1, 2009 to November 1, 2016.
It said that certain retirement plan and charitable organization customers who were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses.