Per week after being ordered by a FINRA arbitration panel to pay $three.2 million to an aged couple, AXA Advisors should pay $772,000 in fines and restitution for misrepresenting funds to six,200 individuals in its 401(okay) retirement plan.
In keeping with the Monetary Trade Regulatory Authority, AXA distributed 1000’s of enrollment types and funding choices attachments that mispresented sure bond funds for 401(okay) plans as “investment-grade,” whereas “a considerable portion of the funds’ portfolios consisted of high-yield or junk bonds.”
The fund that affected the most important variety of individuals was represented as investment-grade whereas 65% of its portfolio was in high-yield bonds.
“Traders want correct data to make knowledgeable selections about their retirement financial savings, and member companies play a vital function in offering full and correct data to retirement plan sponsors,” stated Susan Schroeder, FINRA’s government vp, Division of Enforcement.
AXA neither admitted to nor denied the fees.