Stock broker Kevin Jedlicka of Maryland has been suspended by the Financial Industry Regulatory Authority (FINRA) after an investigation led the regulator to find that Jedlicka had engaged in a pattern of unsuitable short-term trading of Class A mutual fund shares and UlTs in the accounts of four customers. According to FINRA, Jedlicka’s recommendations caused the customers to incur unnecessary sales charges, and were unsuitable in view of the frequency and cost of the transactions.
Class A Mutual Fund Shares
Because of the different cost structures between mutual fund share classes, there is normally an optimal share class for each investor depending on his or her investment objectives and goals. Class A mutual fund shares are front loaded, but have lower expense ratios than Class B and C shares. Generally speaking, these features make Class A shares more suitable than Class B and C shares for buy-and-hold investors. Conversely, because of their cost structure, Class A shares can be misused by brokers to churn customer accounts.
Unit Investment Trusts
Unit investment trusts are pooled investment vehicles of fixed duration which typically have fixed investment portfolios. FINRA has been cracking down on sales practice violations relating to UITs in recent years. The regulator’s 2017 Regulatory and Examination Priorities Letter stated that there would be a continued focus on member firms’ application of UIT breakpoint discounts, UIT rollover recommendations, and the overall supervision of UIT transactions.
If you have suffered investment losses as a result of the malpractice or misconduct of Kevin Jedlicka, we may be able to assist you. Call one of our experienced investor advocates toll-free at 888-607-4819 for a free consultation and case evaluation.