Bank-owned broker dealer agrees to $634,000 settlement Finra over failure to supervise sale of non-traditional Exchange Traded Funds meant to be held no longer than a single day.
Wirehouse marketed wrap program to retail investors as having a single all-in cost without disclosing that third-party managers sometimes passed along execution costs charged by other broker-dealers, SEC said.
TAMPs that service independent brokers will have to compete much more aggressively on end-investor experience, says AssetMark CEO Charles Goldman.
Firm also will cap front-end fund loads, restrict buyers of structured notes and market-linked products and create uniform commissions by fund styles.
Regulator won’t delay June 30 compliance date for the investor protection rule, despite the coronavirus disruption, because most firms are well along in preparing for the changes, says SEC Chair Jay Clayton.
The regulator updated earlier guidance from a week ago that had allowed cases to proceed on an ad hoc basis.
Clayton reminds companies to provide investors insight on assessment and plans for addressing material risks to their businesses as a result of the pandemic.
SEC slams firm for failing to supervise advisors who unsuitably sold complex securities.
The state’s rule goes beyond the Securities and Exchange Commission’s ‘Best Interest’ standard but the final version grants industry concessions on some key points, including sales of insurance products.
Former Mutual of Omaha broker accused of stealing $2.4 million from mostly elderly customers by selling a fake 4%-guaranteed investment agrees to settle fraud charges and pay monetary relief.
Sanction is latest in string of fines against firms accused of selling high-cost fund share classes to certain retirement plan and charitable-account clients eligible for less expensive shares.