FINRA Orders Firm to Pay Millions in Restitution for Improper Pricing of Mutual Fund Orders

FINRA announced that it has ordered a broker-dealer to pay more than $10.7 million in restitution to customers who placed mutual fund orders with the firm via paper orders from retail customers and who received an inferior price for their shares as a result of the firm's delay in submitting purchase orders. FINRA also fined the firm for its alleged pricing errors and for failing to have an adequate supervisory system and written procedures in this area.

The order does not assert that the delay was intended to defraud customers.

Click here to view FINRA notice in full (links externally to FINRA website).