Thrivent Investment Management

Kurta Law is investigating broker recommendations from Thrivent Investment Management (CRD#: 18387). The firm is a broker-dealer and investment advisory firm based in Minneapolis, Minnesota. It has an affiliate investment advisory firm, Thrivent Advisor Network.

Thrivent Investment Management has also operated as AAL Capital Management Corporation, Fortress Distributors, and AAL Distributors.

Fees and Conflicts of Interest

Brokerage firms are required to disclose their conflicts of interest and fees in a Customer Relationship Summary (Form CRS) designed to inform investors. Thrivent Investment Management discloses the following information in its Form CRS:

• Brokerage accounts charge transaction-based fees, incentivizing the firm to encourage trading.
• You’ll also pay investment-specific fees. Mutual funds typically charge an upfront sales fee and ongoing 12b-1 fees and other expenses, and closed-end funds and alternative investments also charge ongoing fees.
• Issuers of variable annuities, variable life insurance products, and registered index-linked annuities (RILAs) pay the firm a commission.
• You’ll pay a quarterly fee for investment advisory services based on the amount of eligible assets in your account, incentivizing the firm to encourage you to increase your assets. You may still be charged certain transaction fees not included in the quarterly fee.
• As a wholly-owned subsidiary of Thrivent Financial Holdings (itself a subsidiary of Thrivent Financial for Lutherans), Thrivent Investment Management has an incentive to recommend products issued by Thrivent Financial for Lutherans and its affiliates.
• The firm and its parent companies’ affiliates receive payments from third parties when you purchase certain investments.
• Thrivent Investment Management has revenue-sharing agreements with affiliates and third parties, and receives compensation for providing distribution, training, and other services.

Broker-Dealer Services

Thrivent Investment Management only allows its brokers to recommend investments issued, sponsored, or managed by the firm, its affiliates or certain third parties. These include:

• Securities
• Mutual funds
• Closed-end funds
• Variable annuities
• Registered index-linked annuities (RILAs)
• Variable life insurance products
• Alternative investments

Regulatory Actions

Investors should be aware that Thrivent Investment Management has been the subject of regulatory actions by FINRA and the SEC. You can review its full history of regulatory actions on its detailed BrokerCheck page.

SEC Mutual Fund Allegations

On October 2, 2024, the Securities and Exchange Commission filed cease-and-desist proceedings against Thrivent Investment Management, alleging that the firm failed to comply with Regulation Best Interest in connection with its recommendations of certain mutual fund shares between 2020 and 2022.

The SEC alleged that the firm used an inaccurate share class calculator to decide to recommend that certain clients invest in Class A mutual fund shares over Class C shares offered by the Nebraska Nest Advisor College Savings Plan and Illinois Bright Directions Advisor-Guided 529 College Savings Program.

The SEC censured the firm, fined it $25,000, and ordered it to cease and desist from violations of Regulation Best Interest.

Alleged Failure to Supervise

On May 28, 2024, FINRA filed a Letter of Acceptance, Waiver & Consent (AWC) alleging that Thrivent Investment Management failed to establish and maintain a system of supervision reasonably designed to detect signature forgery and falsification.

The AWC alleged that, between 2017-2024, 15 brokers from the firm electronically signed at least 120 client names on more than 260 documents.

FINRA censured the firm, fined it $325,000, and ordered it to remediate the supervisory issues alleged in the AWC. You can read the full AWC here.

FINRA Mutual Fund Allegations

On August 9, 2018, FINRA filed an AWC alleging that Thrivent Investment Management failed to establish and enforce a system of supervision reasonably designed to ensure the identification and application of available sales charge waivers and breakpoint discounts for eligible investors.

The firm was censured by FINRA and ordered to provide remediation to eligible investors who allegedly did not receive applicable mutual fund sales charge waivers or available breakpoint discounts.

You can read the full AWC here.

Brokers with Misconduct Allegations on Their Records

Kurta Law is aware of the following current or former brokers associated with Thrivent Investment Management who have allegations of misconduct on their records. This isn’t necessarily a complete list, so investors who have concerns about their brokers should seek out a securities attorney.

• Kathleen Bramlett: https://www.kurtalawfirm.com/blog/kathleen-bramlett/ 
• Barry Hesse: https://www.kurtalawfirm.com/blog/barry-hesse/ 
• Todd Trautmann: https://www.kurtalawfirm.com/blog/todd-trautmann/ 
• Kim Dwyer: https://www.kurtalawfirm.com/blog/kim-dwyer/ 
• Michael Shackel: https://www.kurtalawfirm.com/blog/michael-shackel/ 

Kurta Law Can Help

Investors who lost money working with a Thrivent Investment Management broker or advisor should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.