SEC Orders an Additional 16 Self-Reporting Advisory Firms to Pay Nearly $10 Million to Investors

October 1, 2019

On September 30, 2019, the SEC announced it settled charges against 17 investment advisers for disclosure failures regarding their mutual fund share class selection practices. The firms include 16 advisers that self-reported as part of the Division of Enforcement’s Share Class Selection Disclosure Initiative (Initiative) and one adviser that did not self-report. The SEC ordered the 16 self-reporting firms to pay disgorgement and prejudgment interest totaling nearly $10 million but did not order a civil penalty for any of the firms. The SEC, however, ordered the firm that did not self-report to pay a $300,000 civil monetary penalty, in addition to disgorgement and prejudgment interest totaling over $1 million.

The SEC stated that the actions against the 16 self-reporting firms have brought the total amount ordered to be returned to investors under the Initiative to over $135 million.

Click here to access the related SEC press release.


Compliance, Enforcement Actions, Investment Advisers, Investment Companies, Mutual Funds, Regulatory