Written by The White Law Group• January 26, 2023• 3:38 pm• Blog, Current Investigations

FINRA Sanctions 3 Firms for 529 Overcharges

Securities America, Royal Alliance, and SagePoint pay Restitution to 529 plan Investors

According to a Letter of Acceptance Waiver and Consent posted by FINRA on January 25, 2023, from September 2015 to September 2020, Securities America, Royal Alliance, and SagePoint failed to establish and maintain a supervisory system reasonably designed to ensure that all eligible customers received applicable sales charge waivers or special share classes in connection with rolling over 529 plans from one state plan to another.

Some customers who were eligible for these waivers or special share classes did not receive them, according to FINRA. Therefore, the three firms reportedly violated MSRB Rule G-27. In the letter, FINRA credits the firms for their cooperation. Accordingly, this AWC includes an undertaking to pay restitution totaling approximately $515,000 plus interest, and censures, but no fines.

Securities America consents to the following sanctions: ? a censure; ? restitution of $122,845.59 plus interest; and a certification of Securities America’s remediation and implementation.

Royal Alliance consents to the following sanctions: ? a censure; ? restitution of $234,831.92 plus interest as described below; and certification of Royal Alliance’s remediation and implementation.

SagePoint consents to the the following sanctions: ? a censure; ? restitution of $156,903.93 plus interest and certification of SagePoint’s remediation and implementation.

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The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors throughout the country in claims against their brokerage firm.