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Cambridge Funding Analysis says it’s below evaluate by the Monetary Business Regulatory Authority examination employees and expects to make a $500,000 restitution cost in 2024 to sure shoppers.
The FINRA employees is reviewing Cambridge’s procedures for offering clients with payment waivers, rebates and reductions when accessible by way of so-called rights of reinstatement. In reference to this evaluate, the corporate voluntarily determined to reimburse shoppers to whom these rights weren’t honored, the corporate disclosed in its 2023 Focus report, filed Feb. 27.
FINRA continues to evaluate this matter and the corporate expects that the evaluate will lengthen additional than it had anticipated, the broker-dealer says within the submitting, noting that it accrued a legal responsibility in 2023 associated to the anticipated $500,000 restitution cost.
SEC Case
March 1, 2022, the Securities and Change Commisison filed an enforcement motion in opposition to Cambridge Funding Analysis Advisors Inc., the corporate’s RIA. It alleged that the RIA invested shopper belongings in mutual funds and cash market sweep funds that generated hundreds of thousands of {dollars} in income sharing funds to the Cambridge BD, as an alternative of lower-cost share lessons and funding choices that might have yielded much less or no income sharing.
That case continues to be pending, based on the agency’s Type ADV filed in late February.
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