On December 1, 2025, FINRA accepted a Letter of Acceptance, Waiver, and Consent (“AWC”) from Osaic Wealth, Inc. (“Osaic”) related to the sale of Class A mutual funds. According to the filings, during a routine regulatory examination, FINRA discovered that from January 2018 to June 2024, Osaic’s predecessor, Securities America, Inc., generated approximately $3.8 billion from selling Class A mutual funds to public investors without having a proper supervisory system in place in violation of FINRA Rules and Reg BI. Without admitting or denying FINRA’s allegations, and as a settlement to FINRA’s inquiry into the sales, Osaic agreed to the AWC, which sanctioned Osaic with a censure, $1 million fine, and $2 million restitution penalty to be paid to impacted investors.
Risks of Class A Mutual Funds
Class A mutual funds need careful evaluation before recommendations and supervisory oversight because they have unique cost structures that can lead to transaction costs and commissions depending on how much the investor purchases, when the investor leaves the position, and how the investor leaves the position. In general, Class A mutual funds are typically suitable for long-term investors. Short-term trading, on the other hand, is often not in the investors’ best interest and can be deemed “switching” if they unnecessarily cause additional charges and commissions.
Impacted Investors
If you have received a restitution payment from Osaic related to this AWC, or if believe you should have received one because you had switching in your investment account at Securities America, Inc., Osaic, or any other brokerage firm, do not hesitate to contact our office at 800-556-3526 or complete our contact form for a free consultation. We work on a contingency fee basis to try to recover losses. In other words, if we do not obtain a recovery, you do not owe us any legal fees. Act before time runs out on your claim.