Regulators Settle With Brokerages Over Fund Discounts

Feb. 12, 2004 — Securities regulators said 15 brokerage firms have agreed to pay more than $21.5 million to settle charges that they overcharged people who bought mutual funds through the firms.

The Securities and Exchange Commission and the National Association of Securities Dealers said the firms failed to give discounts, known as breakpoint discounts, on sales charges on large share purchases.

The firms have agreed to compensate customers for the overcharges, which averaged $243 per transaction and ranged up to $10,000, regulators said. The brokerages will also pay fines and take other “corrective measures, the regulatory bodies said.