SEC Fines 13 Advisers for Negligence

WASHINGTON (CN) — The SEC fined 13 investment firms a total of $2.2 million for spreading false claims that F-Squared Investments made about its investment strategy, for which F-Squared itself was fined $35 million.
     The SEC said Thursday that an “enforcement sweep” found that the 13 firms negligently relied on F-Squared’s claim that its AlphaSector strategy for investing in exchange-traded funds had outperformed the S&P Index for several years. The firms repeated the claims without inquiring whether, as F-Squared later admitted, that its claims were inflated.
     F-Squared was fined $35 million in 2014.
     On Thursday the SEC announced it had fined these firms these amounts:
     AssetMark — $500,000
     BB&T Securities — $200,000
     Banyan Partners — $200,000
     Congress Wealth Management — $100,000
     Constellation Wealth Advisors — $100,000
     Executive Monetary Management — $100,000
     HT Partners — $100,000
     Hilliard Lyons — $200,000
     Ladenburg Thalmann Asset Management — $200,000
     Prospera Financial Services — $100,000
     Risk Paradigm Group — $100,000
     Schneider Downs Wealth Management Advisors — $100,000
     Shamrock Asset Management — $200,000

%d bloggers like this: