SunTrust Investment Services, Inc. Fined by FINRA for Improper Assessment of Investment Advisory Fees

SunTrust Investment Services, Inc. submitted an AWC in which the firm was censured and fined $80,000. SunTrust consented to the sanctions, without admitting liability, and to the entry of findings that it failed to establish a supervisory system reasonably designed to monitor the proper assessment of fees charged to certain investment advisory customers. The findings stated that the firm overcharged investment advisory fees to customers enrolled in one of the firm’s investment advisory programs. These overcharges resulted from the installation of new fee-engine software by the firm’s clearing firm that, without the firm’s knowledge, failed to correctly bundle certain asset classes for the purpose of calculating breakpoint discounts for fees. The firm failed to discover the investment advisory fee overcharges for a period of approximately two-and-a-half years. The firm also failed to conduct adequate periodic reviews to ensure that the proper fees were assessed for certain investment advisory accounts. (FINRA Case #2011029668001)

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