Wednesday, January 18, 2017
Investor ALERT : Online brokers may be overcharging you
This ALERT is for investors who buy mutual funds via a discount broker. Discount brokers shouldn’t be collecting opaquely disclosed trailer commissions intended to provide you with investment advice. The obligation to provide investment advice is contained in Fund Facts , the document you were given before you bought the fund .A recent report provided by securities regulators tells us that about $25 Billion in mutual funds at discount brokers are A class ( a class of fund with a portion of the cost intended for advice per Fund Facts) which means that investors are being overcharged .Since discount brokers cannot and do not provide investment advice, clients of A class funds are being robbed of returns.Clients are not being treated fairly, honestly and in good faith as required by securities laws. We've been asking Regulators for years to enforce the law; we're still waiting for an answer.