An advisory firm in Memphis learned the hard way that managing fee-based assets within a brokerage environment, and doing so under the Investment Advisors Act of 1940, requires solid back office support.

The Securities and Exchange Commission cited Wunderlich Securities for overcharging advisory clients on thousands of transactions over a two-year period, the regulator announced on May 27. The SEC also said Wunderlich failed to properly disclose certain principal trades to clients. Without admitting or denying the SEC’s charges, Wunderlich settled with the regulator for about $627,688 in penalties. 

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access