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FINRA fines 12 firms for failing to apply discounts on UIT purchases
October 20, 2015 / 3:30 PM / 2 years ago

FINRA fines 12 firms for failing to apply discounts on UIT purchases

Oct 20 (Reuters) - The Financial Industry Regulatory Authority (FINRA) said it ordered 12 firms to pay a total of $6.7 million for failing to apply sales charge discounts to customers’ purchases of Unit Investment Trusts (UITs) and related supervisory failures.

FINRA, Wall Street’s industry-funded watchdog, said on Tuesday the firms would pay more than $2.6 million as fine and more than $4 million in restitution.

The firms include brokers and financial advisers First Allied Securities Inc, Fifth Third Securities Inc, Comerica Securities and MetLife Securities Inc.

“The firms sanctioned today failed to provide these discounts, resulting in customer harm in the form of higher costs for which customers have been or will be reimbursed,” said Brad Bennett, FINRA’s chief of enforcement.

A UIT is a type of investment company that offers redeemable units of a generally fixed portfolio of securities that terminate on a specific date. (Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)

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