Banks should consider offering restitution to disgruntled mutual fund customers instead of letting disputes escalate into arbitration claims, a thrift compliance executive warned.

Full or partial adjustments can be preferable even when a bank believes it has complied with all suitability and disclosure standards, said Daniel C. Caneva, director of compliance for Glenfed Brokerage Services, a unit of Glendale Federal Bank, Glendale, Calif.

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