‘Extraordinary cooperation’ pays off for PFS Investments

As federal regulators increasingly reward companies for self-reporting, self-regulation and cooperating with investigations, the case of a registered broker-dealer out of Georgia shows how early action and transparency can help firms avoid harsher penalties, even after years of costly compliance lapses.

Primerica Financial Services (PFS) Investments, Inc. overcharged its customers by hundreds of thousands of dollars in extra fees over five years—not on purpose, but because it didn’t properly check if eligible customers were receiving cost reductions on mutual fund fees. The firm did not have any automated surveillance that was specifically designed to flag instances in which customers missed discounts for which they were eligible, according to an investigation by the Financial Industry Regulatory Authority (FINRA).