An annuities firm agreed to settle FINRA charges for misrepresenting the nature of a portfolio containing several retirement bond funds to 401(k) sponsors and participants.
According to the Letter of Acceptance, Waiver, and Consent, AXA Advisors, LLC ("AXA") misrepresented five funds that were offered for 401k plans by stating that the funds were "investment grade." In fact, the portfolio contained a large portion of high-yield or junk bonds. FINRA found that the firm had violated FINRA supervisory rules by failing to have supervisory systems and procedures in place to determine the accuracy of the credit descriptions in bond fund documents.
Without admitting or denying the charges, AXA agreed to a $600,000 fine and to pay approximately $172,000 in restitution to those affected.
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