The Financial Industry Regulatory Authority has ordered a NewJersey company to pay more than $10.7 million in restitution, plusinterest, to customers who placed mutual fund orders with PrucoSecurities, LLC, via facsimile or paper orders from late 2003 toJune 2011 and received an inferior price for their shares.
FINRA also fined Pruco $550,000 for its pricing errors and forfailing to have an adequate supervisory system and writtenprocedures in this area.
“Pruco’s inadequate supervision and pricing system resulted inthousands of customers receiving inferior prices for more thanseven years. Broker-dealers must ensure that their systems providecustomers with accurate pricing for all products that the firmsoffer,” said Brad Bennett, executive vice president and chief ofenforcement at FINRA.
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