A broker-dealer agreed to settle FINRA charges for allegedly failing to reasonably supervise mutual fund sales to ensure that eligible customers received the benefit of applicable sales charge waivers and breakpoint discounts.
According to the Letter of Acceptance, Waiver and Consent, Thrivent Investment Management Inc. ("Thrivent") failed to place eligible customers in the most advantageous share classes available and failed to provide breakpoint discounts for customers who transacted with non-proprietary mutual fund companies. FINRA claimed that these failures occurred because Thrivent did not have sufficient written policies or procedures to assist financial advisors in determining the applicability of sales charge waivers.
According to FINRA, Thrivent was cooperative in response to the allegations and has taken prompt and concrete steps to rectify its supposed misconduct. Thrivent returned approximately $870,000 in restitution to customers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.