Cetera Fined $1.4M For Churning Broker

You may have heard the term “churning” in discussions of investments and securities. But you probably won’t know what it means unless you’ve actually experienced it. (Hint: it has nothing to do with butter.) “Churning” is when a broker and/or firm conducted extra trading in your account for the sole purpose of earning additional commissions from the transactions. If you’ve ever looked at an account statement and thought, “that’s quite a lot of broker commissions,” it could mean that your account has been churned. Cetera Advisor Networks will be paying about $1.4 million in fines and restitution related to a former broker who made multiple short-term mutual fund purchases. The broker received sales awards in 2013 and 2014 from the firm. FINRA fined Cetera $700,000, and ordered the firm to pay $691,800 in customer restitution. The unidentified broker made hundreds of short-term purchases sales of A-share mutual funds in…

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