Stephens Inc. Sanctioned by Securities Regulators for Mutual Fund Sales Charge Abuse

October 27, 2015

Stephens, Inc.  entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that since June 1, 2009, Stephens disadvantaged certain retirement plans and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge. Those customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses.


FINRA found that during this period, Stephens failed to establish and maintain a supervisory system and procedures reasonably designed to ensure that eligible customers who purchased mutual fund shares received the benefit of applicable sales charge waivers. As a result, Stephens violated NASD Conduct Rule 3010 (for misconduct before December 1,2014), FINRA Rule 3 110 (for misconduct on or after December 1,2014), and FINRA Rule 2010.

AWC No.  2015046029901

Stephens was censured and required to provide a detailed plan to remediate affected customers.

Stephens, Inc., is headquartered in Little Rock, Arkansas, and  has been a FINRA member since 1950. It has more than 430 registered agents and over 25 branch offices, including Texas offices in  Austin, , Dallas, & Houston and Florida offices in St. Petersburg.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

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