BofA Is Latest Bank Sued Over Adviser Commission Forfeitures

A former Bank of America Corp. unit financial adviser filed a proposed class action saying he was wrongly forced to forfeit more than $500,000 in commissions under a deferred compensation plan that doesn’t comply with federal benefits law.

The lawsuit, filed Tuesday in the US District Court for the Western District of North Carolina, centers on a deferred compensation program in which financial advisers are required to contribute a portion of their commissions and is similar to one driving a 2020 suit against Morgan Stanley. BofA’s plan allegedly includes a “cancellation rule” in which advisers can forfeit any commissions ...