Cambridge Funding Analysis says it’s below assessment by the Monetary Trade Regulatory Authority examination employees and expects to make a $500,000 restitution cost in 2024 to sure purchasers.
The FINRA employees is reviewing Cambridge’s procedures for offering prospects with price waivers, rebates and reductions when obtainable by way of so-called rights of reinstatement. In reference to this assessment, the corporate voluntarily determined to reimburse purchasers to whom these rights weren’t honored, the corporate disclosed in its 2023 Focus report, filed Feb. 27.
FINRA continues to assessment this matter and the corporate expects that the assessment will prolong additional than it had anticipated, the broker-dealer says within the submitting, noting that it accrued a legal responsibility in 2023 associated to the anticipated $500,000 restitution cost.
SEC Case
March 1, 2022, the Securities and Alternate Commisison filed an enforcement motion towards Cambridge Funding Analysis Advisors Inc., the corporate’s RIA. It alleged that the RIA invested shopper property in mutual funds and cash market sweep funds that generated thousands and thousands of {dollars} in income sharing funds to the Cambridge BD, as an alternative of lower-cost share courses and funding choices that may have yielded much less or no income sharing.
That case continues to be pending, in keeping with the agency’s Kind ADV filed in late February.