Deadline Fast Approaching on FINRA's 529 Plan Share Class Self-Reporting Initiative
DEADLINE FAST APPROACHING ON FINRA'S 529 PLAN SHARE CLASS SELF-REPORTING INITIATIVE
I hope that everyone is up to speed on this, but just in case here are the details and links:
FINRA'S 529 Plan Share Class Initiative
Through this initiative, FINRA is encouraging firms to take a look at how they supervise their sales of 529 Plans and, in particular, the suitability of their share class recommendations in 529 Plans. Firms that take a look at their supervision and find a deficiency are invited to self-report to FINRA and work with FINRA to develop a plan to make restitution to impacted customers. In return, FINRA will recommend a settlement that includes restitution to customers, but not fine.
Why did FINRA initiate this self-reporting initiative?
FINRA has learned in the course of reviewing some firms' supervision and sales of 529 Plans that this can be a blind spot for some firms. They have identified a few kinds of supervisory issues at firms and given the importance of this investment vehicle and the important objective of getting money back to those customers who are deserving of restitution, FINRA thought it made sense to tell firms what they were seeing and what they are concerned about in this area.
New Deadline for Self-Reporting: April 30, 2019
New due dates: Participating firms must provide FINRA Enforcement notice of their self-report by April 30, 2019, and then must confirm their eligibility by submitting the additional information specified in Regulatory Notice 19-04 by May 31, 2019.
The Pierce Group, Inc. (new company)
(801) 733-9909 w
(801) 949-5577 c