Finra censures Voya over sales of front-end load funds

Groups eligible for no-load version were steered to other funds, Finra says

Apr 24, 2019 @ 11:56 am

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has censured Voya Financial Advisors and ordered it to pay an unspecified amount in remediation to retirement plan and charitable organization customers to whom it sold mutual funds.

(More:Voya cybersecurity blunder should serve as a wake-up call to the entire industry)

In a letter of acceptance, waiver and consent, Finra said that from Jan. 1, 2009 through May 26, 2016, Voya disadvantaged those customers, who were able to purchase Class A shares in certain mutual funds of the firm's without a front-end sales charge. Instead, those customers were sold Class A shares with a load or Class B or C shares with back-end loans and higher ongoing fees and expenses.

During the time in question, Finra said, Voya "failed to establish and maintain a supervisory system and procedures reasonably designed to ensure that eligible customers who purchased mutual fund shares received the benefit of applicable sales charge waivers."


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