On March 4, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 21-07 (Notice) providing additional background and guidance on sales charge discounts and waivers for investment company products.

The Notice provides an overview of common volume-based sales charge discounts and sales charge waivers for mutual funds, 529 plans, non-traded real estate investment trusts and non-traded business development corporations.

The Notice reminds firms to establish and maintain adequate supervisory systems and written supervisory procedures and adequately train their associated persons regarding sales charge discounts and sales charge waivers. The Notice provides topics of considerations for firms to improve their compliance programs, including supervision, recordkeeping, eligibility tracking and training.

FINRA Regulatory Notice 21-07.