Fee disclosures

Alpine Securities will seek to overturn a FINRA finding that it saddled clients with “unreasonable” fees and converted accounts without authorization.

The regulator didn’t provide any explanation for the much larger payout, but it did release another similar settlement the following day.

Despite industry criticism, the regulator’s ongoing wave of cases has expanded into allegations that wealth managers breached their duty of best execution.

The cuts continue a trend that started 20 years ago.

The regulator has charged about 100 other wealth managers with failing to explain 12b-1 fees tied to their mutual fund recommendations.

The firm faces an additional penalty after it didn’t participate in the regulator’s self-reporting initiative.

In the wake of the regulator’s latest risk alert, compliance experts identify several steps advisors can take to stay clear of more cases and deficiencies.

Higher internal expenses in mutual fund share classes came with much lower overall advisory fees in wrap accounts, the firm argues.

The firms agreed to censures, the settlement payments and to cease-and-desist orders tied to their alleged misconduct.

The case against Centaurus Financial comes after the industry and consumer advocates decried the previous administration’s approach for different reasons.

The litigation reveals how wealth managers’ deals with product sponsors work and how one with a former Voya unit went awry.

The moves come just one day after BlackRock announced reductions on $7.6 billion of its style funds.

The firm has been locked in a contest with runner-up Vanguard for flows, with the latter winning last year for the first time since 2013.

SEC cases that go beyond faulting firms for their failure to disclose conflicts of interest have drawn pushback from the industry.

The allegations involving 12b-1 fees, cash sweeps and commissions also include violations of best execution rules.

In a bid to attract clients left out by AUM fees, IBDs are enabling advisors to take approaches first made popular in the full RIA channel.

But the regulator also ordered record payouts in 2020, including restitution through a self-reporting program that drew industry ire.

CEO Jamie Price says the change will reduce potential conflicts of interest related to transaction fees and come with lower prices in wrap accounts.

Lower transaction costs can often come with higher expense ratios at the nation’s largest IBD.

The regulator charged a $1.4 billion hybrid firm over disclosure of its cash sweep arrangements with its clearing firm.