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Written by 5:53 pm Blog, Current Investigations

FINRA Censures BB&T for Overcharging Retirement Plans


BB&T agrees to provide remediation to affected clients

According to The Financial Industry Regulatory Authority, the regulator has censured BB&T Investment Services for overcharging retirement plans and charitable organizations in their purchases of mutual funds.

BB&T accepted the censure without admitting or denying FINRA’s findings, and agreed to create a remediation plan for the clients who were overcharged.

FINRA said that from at least July 1, 2009, through Aug. 1, 2017, BB&T sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses to certain retirement plan and charitable organization customers. These customers were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge.

BB&T Failed to Provide a Supervisory System

According to the document, BB & T failed to establish and maintain a supervisory system and procedures that would ensure that eligible customers would receive the benefit of applicable sales charge waivers.

BB&T estimates that approximately 865 accounts were overcharged approximately $331,983 for mutual fund purchases made since July 1, 2009. As part of its settlement with FINRA, BB&T said it has paid restitution of approximately $373,134 to eligible customers.

For FINRA’s full findings see FINRA Case # 2016051183701.

Investigating Potential Claims

The White Law Group is investigating the liability that BB&T Investment Services may have for losses sustained by their clients.  Brokerage firms are required to adequately supervise their agents to ensure they are complying with FINRA rules. If it is determined that the broker dealer failed to supervise their agents, they can be held responsible for losses in a FINRA arbitration claim.

Are you concerned about your investment losses with BB&T Investment Services?  The attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.

The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. 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 Franklin, Tennessee.

For more information on The White Law Group, please visit www.whitesecuritieslaw.com





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