ATLANTA — Georgia-based Suntrust Banks has been fined by the Securities and Exchange Commission for collecting inappropriate fees through its investment subsidiary.

The brokerage oversight agency has fined Suntrust for collecting over $1.1 million in avoidable fees from its clients by improperly recommending more expensive share classes of mutual funds even though cheaper shares were available.

The company will pay a fee of $1.1 million to settle the charges.

Reports state Suntrust’s investment affiliate breached its fiduciary duty to act in clients’ best interests by recommending and purchasing costlier mutual fund share classes that charge a type of marketing and distribution fee know as 12b-1 fees. Investors were not informed that they could purchase less expensive shares that don’t charge those fees.  This allowed Suntrust to increase their commissions from the funds.

According to the Atlanta Business Chronicle, The SEC’s order finds that SunTrust violated Sections 206(2), 206(4) and 207 of the Investment Advisers Act of 1940 and Rule 206(4)-7. Without admitting or denying the findings, SunTrust agreed to pay the penalty totaling $1,148,071.77 as well as disgorgement plus interest on any leftover amount of the avoidable 12b-1 fees that are being refunded to clients. The firm also agreed to be censured.