CS Axa

Wall Street's self-regulator ordered five firms to pay more than $18 million in restitution to charitable organizations and retirement accounts that were allegedly overcharged on mutual-fund sales.

Edward D. Jones & Co. L.P., Stifel Nicolaus & Co., Janney Montgomery Scott LLC, AXA Advisors LLC, and Stephens Inc. failed to waive mutual fund sales charges for eligible retirement-plan customers and charitable organizations, the Financial Industry Regulatory Authority said Tuesday. The sanctioned firms didn't confirm or deny the charges.

Finra noted that even though the firms offered waivers of fees to charitable and retirement plan accounts, the agency alleged that, at least since July 2009, these adjustments weren't made on certain occasions when Class A shares were offered. Typically, Class A shares have lower fees than Class B and C shares, but charge customers an initial sales charge, Finra said in a news release announcing the settlement.

Edward D. Jones was ordered to pay $13.5 million in restitution, the heftiest penalty of the five firms sanctioned. Stifel Nicolaus will have to pay $2.9 million, while Janney Montgomery was ordered to pay $1.2 million. AXA Advisors and Stephens will pay $600,000 and $150,000, respectively.

Finra also said the accused firms allegedly failed to adequately supervise the same of mutual funds that offered sales charge waivers.

In July, the wealth-management units of Wells Fargo & Co., Raymond James Financial Inc. and LPL Financial Holdings Inc. were ordered to pay more than $30 million in restitution for similarly failing to waive mutual fund sales charges for retirement accounts and charities.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 27, 2015 11:35 ET (15:35 GMT)

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