In a year filled with securities industry scandals and settlements, the Securities and Exchange Commission has uncovered a new source of potential conflicts of interest. It could be yet another reason to expand the already overwhelming number of disclosures required of investment advisers and broker/dealers.

TD Waterhouse agreed to pay $2 million this week in a settlement over charges that it made undisclosed cash payments to three registered investment advisers to win their brokerage business. Two of the advisers implicated also agreed to settle. Both Kiely Financial, based in Greenville, N.C., and Rudney Associates of San Ramon, Calif., agreed to disgorge the money they received from TD Waterhouse, to pay civil penalties and to stop accepting undisclosed cash payments.

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