PFS Investments Inc. For supervision and ordered the payment of 710,738.55 dollars as compensation after the Financial Industry Regulatory Authority (Finra) found that the company failed to properly supervise the application of concessions on the fees of sales of joint funds and fee discounts.
Finra explained that between August 2019 and July 2024, customers who are entitled to cost discounts are entitled to “re -rights”, a benefit that allows investors to invest in some funds without incurring front sales fees or restoring postponed sales fees, excess fees.
This deficiency is due to the company’s dependence on manual operations, which left the responsibility for requesting discounts with registered actors and customers. Finra found that PFS has no automatic system to determine missing benefits.
Control led customers more than $ 710,000 of unnecessary fees. It is said that PFS, which is based in Duloth, Georgia and has about 19,000 registered actors, has violated the Finra 3110 (A) and 2010 rules, which require effective supervision and high behavior standards.
Finra admitted the company’s “unusual cooperation” of the company, including the involvement of an external advisor, the identification of affected customers, and the creation of new supervision operations.
PFS has already paid $ 90,563.18 to some customers and will complete the payment with interest by early 2025.
The recovery will be made according to a written plan approved by the Finra, and any money that is not required will be dealt with according to the property laws that have not been claimed in the state.
Finra stated that a cash fine was not imposed in light of the therapeutic procedures taken.