Questar to pay nearly $800,000 for overcharging charities ​

Finra censured firm for selling clients more expensive share classes

Nov 3, 2017 @ 2:43 pm

By InvestmentNews

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.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Transamerica's Boan: Crafting better retirement income conversations

Retirement income is a challenge for investors. How can advisers have better conversations about retirement income? Transamerica's Joseph Boan offers insights and tips for advisers.

Latest news & opinion

HighTower on prowl for new CEO, Weissbluth to become chairman

Move is latest in Chicago-based RIA consolidator's effort to expand senior leadership team.

What's in a name? For TCA by ETrade, everything

Trust Company of America is gone, and there's big buzz over the name change. But turning the custodian into an industry powerhouse will take a lot longer — if it happens at all.

When it comes to regulating AI in financial services, murky waters are ahead

Laws are unclear on how the technology fits in with compliance.

As Ameriprise case shows, firms on hook when brokers go bad ​

The SEC will collect $4.5 million from the brokerage firm for failing to supervise brokers who were ripping off clients.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print