Three AIG broker-dealers will pay more than $9.5 million to settle SEC charges that they steered investors into expensive mutual fund share classes to collect higher fees, among other allegations.

Royal Alliance Associates, SagePoint Financial and FSC Securities knew what they were doing when they "willfully violated" securities laws, the commission says in its order. The three "breached their fiduciary duties as investment advisers," the order says. "Respondents failed to disclose in their Forms ADV or otherwise that they had a conflict of interest due to a financial incentive to place non-qualified advisory clients in higher-fee mutual fund share classes."

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