WASHINGTON, Feb. 12 (UPI) -- Fifteen firms will pay more than $21.5 million in fines and compensate investors for failure to give breakpoint discounts, the SEC said Thursday.
Charges were brought against the firms by the Securities and Exchange Commission (SEC) and the National Association of Securities Dealers.
Breakpoint discounts are volume discounts applicable to up-front sales charges on mutual fund shares
The 15 firms have agreed to compensate customers for the overcharges, pay fines in an amount equal to their projected overcharges that total over $21.5 million, and undertake other corrective measures.
Overall, discounts were not given in about one of five eligible transactions. The average amount of overcharge per transaction was $243. NASD estimated that at least $86 million was owed to investors for 2001 and 2002 alone. NASD told all firms to provide refunds to customers who were overcharged, directed 446 firms to notify customers that they may be due refunds, and directed 174 firms to conduct a complete review of individual transactions for possible missed opportunities.
