After focusing on REITs, variable annuities and mutual funds, regulators and now turning their attention to 529 plan fees. FINRA has given firms until April 30th to decide if they will self-report violations and only another 30 days to report their findings. Fortunately, if you find yourself in this situation, we can help.
The Financial Industry Regulatory Authority Inc. finds brokerage firms aren't doing enough to reasonably supervise the share classes their brokers recommend in 529 plans. The agency launched an initiative Jan. 28 that allows firms to self-report potential supervisory and suitability violations related to such recommendations. If firms can successfully address problems and deliver a plan to return money swiftly to harmed customers, Finra's department of enforcement will recommend a settlement that doesn't include a fine. If a firm doesn't self-report, it would not be eligible for an automatic fee waiver if the agency later finds a violation.