FINRA orders PFS Investments to pay $710k in restitution to customers who paid excess fees
The Financial Industry Regulatory Authority (FINRA) has ordered PFS Investments Inc to pay restitution to customers who paid excess fees.
From August 2019 to July 2024, PFS Investments failed to establish and maintain a system reasonably designed to supervise the application of sales charge waivers and fee rebates to which customers were entitled through rights of reinstatement offered by mutual fund companies.
Consequently, customers paid $710,738.55 in excess sales charges and fees during the relevant period.
Therefore, PFS Investments violated FINRA Rules 31 l0(a) and 2010. For these violations, the firm is censured and required to pay $710,738.55 in restitution.
FINRA notes that no fine was imposed due to the firm’s extraordinary cooperation.
PFS Investments has been a FINRA member since 1981. The firm is headquartered in Duluth, Georgia and has approximately 19,000 registered representatives in more than 4,000 branch offices.
