Firm Violated Reg BI With Class A Mutual Fund Switches: FINRA

What You Need To Know

• The short-term switches in Class A mutual funds violated Regulation Best Interest's care obligation, FINRA says.
• Class A mutual fund shares typically include substantial upfront sales charges and are only suitable as long-term investments.
• A rep recommended and made 25 short-term switches in two seniors' accounts, according to FINRA.