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.
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