Alert: FINRA’s 529 Plan Share Class Initiative to Self-Report


Posted on February 4, 2019, by James G. Lundy in FINRA. Comments Off on Alert: FINRA’s 529 Plan Share Class Initiative to Self-Report

On January 28, 2019, FINRA released its Regulatory Notice 19-04 announcing its 529 plan self-reporting initiative. This initiative is part of FINRA efforts to have broker-dealers promptly remedy potential supervisory and suitability violations related to recommendations of share classes for 529 plans.

To encourage self-reporting, for a limited time FINRA will offer favorable settlements where violations are found. These terms include no fine and no designation of “statutory disqualification.” However, the deadline to give FINRA notice that you intend to engage in the 529 plan self-reporting initiative is 12:00 a.m. Eastern time on April 1, 2019. Therefore, time is of the essence. This initiative is further detailed in the Drinker Biddle Client Alert linked below.

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