Load Waived A Shares – Putting The Milk Back In The Bottle

Load Waived A Shares – Putting The Milk Back In The Bottle by L. Burton Keller, Executive Vice President – Strategic Development at Delta Data

In the last couple of years, FINRA has been taking a hard look at brokers that have been selling A shares to retirement plans to make sure they were waiving the load, if the fund allowed such a waiver. Well, it turns out that a lot of brokers have been selling A shares into retirement plans at POP (Public Offering Price), that is, the participants in the plan paid a front end load when the fund’s prospectus allowed those shares to be sold with no load. What’s the result of this activity? A FINRA investigation into...