Fee disclosures

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.

A combination of GLD’s higher fees and an almost relentless demand for the yellow metal have catapulted it from fourth on the revenue leader board in 2017.

The firm allegedly didn't disclose its parent company paid a teacher union entity $10,000 a month “for its exclusive endorsement” as its preferred financial services partner, according to the regulator.