PNC Investments LLC (PNC) of Pittsburgh, Pennsylvania submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly disadvantaging customers in sales of mutual fund shares. PNC has been a FINRA member since December 2003 and has over 1,982 branch offices throughout the U.S.
FINRA found that from at least July 1, 2009, PNC disadvantaged certain retirement plan customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge. There are typically three classes of mutual fund shares: A, B, and C; all with different sales charges, management fees and other terms and conditions. Class A shares generally have the highest initial sales charge and Class B and C shares typically do not carry a front-end sales charge but have significantly higher distribution and service fees and may be subject to a contingent deferred sales charge. Continue reading →