FYI: FINRA Launches 529 Plan Share Class Initiative
Posted onFYI: Perhaps taking a page from the SEC’s playbook, FINRA has launched its first-ever self-reporting initiative for member BDs. Under the initiative, BDs are encouraged to review their supervisory systems and procedures governing 529 plan share-class recommendations and self-report to FINRA any supervisory violations found, along with a plan to remediate harmed customers. In response, according to FINRA’s news release, FINRA’s Department of Enforcement will recommend that FINRA accept a settlement that includes restitution for the impact on affected customers and a censure, but no fine. Although FINRA’s initiative is only aimed at share class recommendations made for customers’ 529 […]