FINRA Conducts Review of Waiver and Rebate Systems and Procedures with Respect to Mutual Fund ROR Purchases
The Financial Industry Regulatory Authority (FINRA) announced that it is conducting a review of firms’ systems and procedures for providing waivers and rebates to customers through Rights of Reinstatement (ROR) on mutual fund purchases. The ROR generally allows customers to redeem mutual fund shares and reinvest the proceeds in the same fund or another fund in the same fund family with a waiver or rebate of sale fees within a certain period of time.
As part of FINRA’s review process, firms that receive an information request will be required to respond to a series of questions.
Additional information and FINRA’s information request questions are available here.