According to FINRA, Edward Jones was ordered to pay $4,440,979 in restitution to customers who were harmed by the firm's failure to provide available mutual fund sales charge waivers and fee rebates.

Many mutual fund issuers offer a right of reinstatement, which allows investors to reinvest in shares of a fund or fund family after previously selling shares without incurring a front-end sales charge, or to recoup all or part of a contingent deferred sales charge.

FINRA found that Edward Jones failed to establish and maintain a supervisory system reasonably designed to supervise whether eligible customers received available mutual fund sales charge waivers and fee rebates through rights of reinstatement. As a result, customers paid excess sales charges and fees to which they were not entitled.

No fine was imposed in recognition of the firm's extraordinary cooperation with FINRA's investigation. The firm voluntarily initiated an extensive review of its systems, engaged an outside consultant to identify affected customers and calculate restitution, and established a plan to efficiently identify, notify, and repay eligible customers.

This case is part of a FINRA targeted examination initiated in 2020 that has secured over $9.5 million in restitution for affected mutual fund customers across five firms.

Investors should be aware that they may be entitled to sales charge waivers when reinvesting in mutual funds they previously owned. If you believe you were charged fees you should not have paid, contact your brokerage firm.