On August 14, 2025, the Financial Industry Regulatory Authority (FINRA) ordered PFS INVESTMENTS INC to pay restitution to customers who paid excessive fees. The firm was censured and ordered to pay $710,738.55 plus interest in restitution to the affected customers.
According to the FINRA report, without admitting or denying FINRA’s findings, PFS INVESTMENTS INC consented to the sanctions and to the entry of findings that it allegedly failed to establish and maintain a system reasonably designed to supervise the application of sales charge waivers and fee rebates to which customers were entitled to through rights of reinstatement offered by mutual fund companies.
FINRA’s findings alleged that PFS INVESTMENTS INC did not ensure customers received rights of reinstatement benefits from mutual fund issuers to which they were entitled and those customers paid $710,738.55 in excess sales charges and fees.
According to a recent article in FNG this allegedly occurred from August of 2019 - July of 2024. The article states that PFS INVESTMENTS INC allegedly violated FINRA Rules 3110(a) and 2010. For these alleged violations, the firm was censured and required to pay the $710,738.55 in restitution. FINRA noted that no fine was imposed due to the firm’s cooperation. PFS INVESTMENTS INC has been a FINRA member since 1981 andis headquartered in Duluth, Georgia. They have approximately 19,000 registered representatives in more than 4,000 branch offices.
FINRA rule 3110(a) Supervisory System states in part that “each member shall establish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules. Final responsibility for proper supervision shall rest with the member.”
To discuss this article or any other securities issues, contact Soreide Law Group and speak to an experienced securities lawyer at no cost: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basis.
Soreide Law Group is currently reviewing potential investor claims related to sales practice violations by securities brokers and financial advisors. One of the investments raising serious concerns is Horizon Private Equity III, a private equity fund once promoted to investors as a safe and reliable option. Recent regulatory findings and court proceedings suggest troubling issues […]
Soreide Law Group is currently reviewing potential investor claims tied to possible sales practice violations involving securities brokers and financial advisors. One product at the center of concern is Hines Global Income Trust, a non-traded REIT that has experienced notable declines in value. Investors should be aware of negative developments surrounding this investment, which are […]
Soreide Law Group is currently reviewing potential investor claims tied to possible sales practice violations by securities brokers and financial advisors. One investment drawing attention is the Hayworth Tanglewood DST, a real estate trust that has raised concerns due to recent financial setbacks and legal challenges. Investors should be aware of the risks and adverse […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com