IAA Today Archive

Dual-Registrant Pays Over $18 Million to Settle Charges Related to Wrap Fee Program Fees, Monitoring

The SEC has fined a New Jersey-based dual-registrant over $18 million for breaches of fiduciary duty to advisory clients that participated in the firm’s wrap fee programs.

January 05, 2021

Keywords: 12b-1 Fees, Best Execution, Conflicts of Interest, Disclosure, Fees and Expenses, Mutual Funds, Revenue Sharing, SEC Enforcement, Share Class Disclosure, Wrap Fees

Categories & Topics: Business Ops/HR, Compliance, Conflicts, Registered Funds, Wrap Fee

Dual-Registrant Pays Over $20 Million to Settle Share Class, Cash Sweep, and Illiquid Alt

The SEC has fined an Iowa-based dual-registrant over $20 million in connection with “disclosure failures and misleading statements to clients” arising from share class selection, revenue sharing, and compensation practices relating to illiquid alternative investments. 

December 28, 2020

Keywords: 12b-1 Fees, Conflicts, Disclosure, Registered Funds, Revenue Sharing, SEC Enforcement, Share Class Disclosure, Trading

Categories & Topics: Brokerage & Trading, Business Ops/HR, Compliance, Conflicts, Registered Funds

Louisiana Adviser Pays $2.3 Million to Settle Share Class Selection, Revenue Sharing, Other Charges

The SEC has brought an enforcement action against a dually-registered investment adviser and broker-dealer in connection with placing clients in fund share classes between that resulted in the adviser and its IARs receiving 12b-1 fees when less expensive share classes were available.

October 05, 2020

Keywords: 12b-1 Fees, Revenue Sharing, SEC Enforcement, Share Class Disclosure

Categories & Topics: Compliance, Enforcement

SEC Adopts Amendments to Shareholder Proposal Rule, Raising the Bar for Submission and Resubmission of Shareholder Proposals

In a 3-2 vote, the SEC has adopted amendments to the rule regarding the process for including shareholder proposals in issuers’ proxy statements, making it more difficult for shareholders to have their proposals put to a vote.

October 02, 2020

Keywords: 12b-1 Fees, Best Execution, Conflicts of Interest, Money Market Fund, Mutual Funds, Revenue Sharing, SEC Enforcement, Share Class Disclosure

Categories & Topics: Business Ops/HR, Compliance, Proxy Voting

SEC Fines Adviser $40 Million for Lack of Disclosure in Connection With Teachers’ Retirement Plans and Share Class Selection

The SEC has fined a Texas-based investment adviser regarding failures to disclose certain practices by the adviser in connection with teacher retirement plans and certain benefits received in connection with mutual fund share class selection practices.

August 11, 2020

Keywords: 12b-1 Fees, Best Execution, Conflicts of Interest, Jay Clayton, Mutual Funds, Retirement Plans, Revenue Sharing, SEC Enforcement, Share Class Disclosure, Wrap Fees

Categories & Topics: Compliance, Conflicts, Enforcement

PA Adviser, Principals Face Share Class Selection and Disclosure Charges

The SEC has filed a complaint against a Pennsylvania-based investment adviser and its principals charging them with breaches of fiduciary duty.

May 19, 2020

Keywords: 12b-1 Fees, Best Execution, Conflicts of Interest, SEC Enforcement, Share Class Disclosure

Categories & Topics: Compliance, Conflicts, Enforcement