SEC

The advisor defrauded some 60 victims by using their money to pay off earlier investors, fund his own speculative trading and pay his personal expenses, the SEC claims.

The firm’s new iShares fund comes amid massive outflows from the sector in recent periods.

The SEC claims Schwab failed to file reports on suspicious transactions by independent advisors.

Company policies were not reasonably designed to detect and prevent misconduct, the SEC claims after one advisor allegedly misappropriated more than $5 million from client accounts.

DaRayl Davis spent client funds on a luxury mansion, theater tickets and car rentals, federal prosecutors say.

The funds, which account for roughly 1% of the $3.5 trillion of assets in ETPs, “pose real risks to American families.”

If approved, the funds will exclude investments in alcohol, tobacco, weapons, fossil fuels and nuclear power.

The framework targets so-called plain vanilla funds, yet leaves in place a more laborious path for firms wishing to list complex products.

Six fiduciary groups call on advisors press SEC to clarify the differences between advisory and brokerage business models.

The only other fund of its kind has $269 million in assets, a figure that’s ballooned roughly 1,700% this year.