Conflicts of Interest Archives

Adviser to Pay $97 Million in Connection with Rollover Conflicts

A New York-based firm dually registered as an investment adviser and broker-dealer has agreed to pay $97 million to settle charges by the SEC and the New York Attorney General’s office (NYAG) that it made inaccurate and misleading statements and failed adequately to disclose conflicts of interest in connection with thousands of rollover recommendations.

July 13, 2021

Tags: Compliance Policies, Conflicts of Interest, Disclosure, SEC Enforcement

BDC Adviser Fined Over $800,000 for Accepting Fees Without Board Knowledge or Approval

The SEC has settled charges against a California-based investment adviser and its co-principal and managing member in connection with their failure to disclose or seek approval for material conflicts of interest in relation to their management of a business development company.

June 15, 2021

Tags: Conflicts of Interest, Enforcement, Fees and Expenses, Fiduciary, Investment Company Act

SEC Fines Adviser for Undisclosed Third-Party Loans to its IARs

The SEC brought an enforcement action against an Arizona-based investment adviser for failing to disclose to clients the existence of and conflicts of interest created by loans its IARs received from a third-party broker-dealer, an investment adviser affiliated with the broker-dealer, and their parent company.

June 15, 2021

Tags: Conflicts of Interest, Disclosure, SEC Enforcement

SEC Fines Principal of Mutual Fund Adviser for Failure to Disclose Conflicts to the Fund

The SEC has fined a principal of a previously registered investment adviser $75,000 for failures to disclose certain conflicts of interest to a mutual fund client of the adviser.

May 18, 2021

Tags: Conflicts of Interest, Mutual Funds, SEC Enforcement

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

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

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

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

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

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

SEC Fines PE Fund Adviser $1.9 Million for Undisclosed Fee Practices, Criticizes Use of the Word “May”

The SEC has settled charges with a New York-based private equity fund adviser for failing to fully disclose its practice of charging portfolio companies for the cost of certain in-house services and the associated conflicts of interest such that it could obtain informed consent.

April 27, 2020

Tags: Conflicts of Interest, Fees and Expenses, Private Equity, SEC Enforcement

SEC Fines Two Advisers for Undisclosed Conflicts Related to Investments in the Same Enterprise

The SEC has settled charges with New Jersey– and California-based investment advisers.

March 11, 2020

Tags: Conflicts of Interest, SEC Enforcement

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