|
WASHINGTON (AP) -- The Financial Industry Regulatory Authority said Tuesday it fined Oppenheimer & Co. $1 million for knowingly submitting inaccurate mutual fund breakpoint data. FINRA is a non-governmental regulator for securities firms doing business in the United States. It was created this year through the consolidation of NASD and NYSE member regulation. Oppenheimer, a unit of Oppenheimer Holdings Inc., must also use an independent consultant to evaluate its policies, systems and procedures when responding to information requests from regulators, based on a settlement with FINRA. FINRA predecessor NASD began an investigation in 2003 to review 2,000 broker-dealers that sold front-end load mutual funds in 2001 and 2002. The NASD investigation showed that nearly one-third of mutual fund transactions in front-end load mutual funds that appeared eligible for a breakpoint discount did not receive one. Breakpoints are specified values at which customers are entitled to pay smaller sales loads. FINRA found on two occasions that Oppenheimer submitted inaccurate and incomplete data to NASD's request to perform a self-assessment of its breakpoint discount practices. Oppenheimer did not acknowledge any wrongdoing when settling the investigation and agreeing to the fine.
|