Class action brought on behalf of full-service clients with funds that paid trailers
Customers paid higher fees, got less interest on cash balances: FINRA
Fee fairness and disclosure, potential for conflicts of interest among issues in CSA consultation
Total cost reporting will increase fee transparency, put more onus on advisors to demonstrate their value to clients
Regulatory fees set to rise in line with consumer inflation
Association also tightens compensation disclosure requirements
Review documents failings in meeting KYC, KYP, suitability requirements
SRO alleged investors paid US$2 million in fees for short-term sales
Compliance review will examine industry conflicts with investors' interests
Firm paid $4.6 million in client compensation, clawed back reps' fees