As of December 1, 2025, the Financial Industry Regulatory Authority (FINRA) has ordered Securities America, Inc.—now operating under Osaic Wealth, Inc.—to pay more than $3 million in restitution and fines following an investigation into the firm’s supervision of Class A mutual fund transactions. The enforcement action stems from failures that occurred between January 2018 and June 2024, a period during which Securities America sold approximately $3.8 billion in Class A mutual fund shares to retail investors. FINRA found that “customers [paid] unnecessary fees through recommendations that were potentially unsuitable or not in customers’ best interest”.
According to FINRA, Securities America failed to establish and maintain a supervisory system reasonably designed to oversee recommendations involving Class A mutual funds. These funds typically carry front-end sales charges, meaning investors pay a commission at the time of purchase. Because of this structure, frequent trading or switching between fund families can result in investors paying unnecessary and avoidable fees, particularly when the transactions occur within short timeframes.
FINRA reported that, due to deficient supervision, the firm failed to properly review or identify more than 1,000 mutual fund switches between fund families and over 2,000 short-term sales of Class A shares. These types of transactions often raise red flags because they can erode investor returns through repeated sales charges without providing meaningful benefits to the client. Regulators determined that, as a result of these failures, certain customers incurred unnecessary commissions and sales loads.
As part of the settlement, Securities America agreed to pay $2,019,040 in restitution to affected customers and an additional $1 million civil penalty. In total, the sanctions exceed $3 million. The firm consented to FINRA’s findings without admitting or denying the violations. Restitution is intended to reimburse investors who were harmed by the firm’s supervisory lapses, while the fine serves as a regulatory penalty.
Securities America was acquired by Osaic Wealth in June 2024 as part of a broader merger involving several broker-dealers. Although the entity now operates under the Osaic name, the regulatory violations stem from conduct that occurred prior to that consolidation. FINRA’s action makes clear that broker-dealers remain responsible for misconduct that occurred before corporate restructuring or mergers.
This enforcement matter highlights the critical role that broker-dealer supervision plays in protecting investors. FINRA rules require firms to maintain systems designed to detect excessive trading, unsuitable investment recommendations, and transactions that generate commissions without corresponding investor benefit. When those systems are not properly implemented or enforced, investors may be exposed to costs that can significantly reduce long-term investment returns.
Investors who purchased Class A mutual funds through Securities America or Osaic between 2018 and 2024, particularly those who engaged in fund switches or short-term sales, should closely review their account statements and transaction history. Investors should evaluate whether they paid multiple front-end sales charges, experienced frequent fund changes, or were recommended transactions that did not align with their investment objectives or time horizon.
KlaymanToskes represents investors nationwide in cases involving excessive fees and sales charges, unsuitable investment recommendations, and broker-dealer supervisory failures. If you suffered losses as a result of similar securities violations, contact KlaymanToskes for a free, confidential consultation at 888-997-9956 or investigations@klaymantoskes.com to discuss your legal options.
KlaymanToskes firm offers free, confidential consultations to evaluate potential claims and determine whether further action may be appropriate.