The Commission ordered the firm to pay disgorgement, prejudgment interest, and a civil monetary penalty totaling $603,799.08.
SEC allegations and order against Securities America Advisors
The SEC alleged that Securities America Advisors’ policies and procedures concerning the suitability of volatility-linked exchange-traded products were inadequate to prevent violations of the Advisers Act. It also failed to implement its existing policies and procedures, which prohibits long-term investments in such products.
The Commission ordered the firm to pay disgorgement, prejudgment interest, and a civil monetary penalty totaling $603,776.82.
SEC allegations and order against Royal Alliance Associates
The SEC alleged that Royal Alliance Associates failed to implement its written supervisory policy and sales practice manual requiring its representatives to ensure that their actions are “consistent with the fiduciary duty owed to their clients.”
The firm’s representatives failed to make suitable recommendations to clients about volatility-linked exchange-traded products. They also failed to conduct reasonable investigations and due diligence into such products recommended to clients, according to the Commission.
