Investment Adviser Firms Fined $12 Million by Securities and Exchange Commission


“These disclosure failures cause real harm to clients,” said C. Dabney O’Riordan, Co-Chief of the Asset Management Unit.

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Collectively, the firms will pay approximately $15 million in fines. Harmed clients will receive more than $12 million of the aggregate fine amount.

Share Class Selection Disclosure Initiative

Investment advisers firms are acutely aware of regulatory requirements in their chosen profession. Knowing this, the SEC has initiated the Share Class Selection Disclosure Initiative. Firms are strongly encouraged to participate in the program. By participating, violations are stopped and eligible investor money is returned as quickly as possible.

“The initiative provides eligible advisers until June 12, 2018, to self-report similar misconduct and take advantage of the Enforcement Division’s willingness to recommend more favorable settlement terms, including no civil penalties against the adviser.” – Securities and Exchange Commission

The SEC states that said firms violated provisions of the Investment Advisers Act of 1940, including an antifraud provision.