79 Investment Firms Agree to Reimburse $125 Million In Fund Fees to Investors

Posted on March 14th, 2019 at 3:48 PM
79 Investment Firms Agree to Reimburse $125 Million In Fund Fees to Investors

From the Desk of Jim Eccleston at Eccleston Law LLC:

According to the SEC, 79 investment firms, including LPL Financial, Raymond James, Oppenheimer, and Wells Fargo have agreed to return more than $125 million to investors for failing to report conflicts of interest in their sale of mutual funds.

The settlement stems from the SEC’s Share Class Selection Disclosure Initiative (SCSD Initiative) announced in February of 2018. Under the SCSD Initiative, the SEC will recommend standardized, favorable settlement terms to investment advisers who self-report violations of the federal securities laws relating to certain mutual fund share class selection issues.

Moreover, under the SCSD Initiative, eligible advisers that participate in the SCSD Initiative and report undisclosed securities violations, also will be required to disgorge all ill-gotten gains and reimburse the harmed clients. However, the SEC will not impose any additional civil monetary penalty on advisers.

Notably, the SEC also has warned advisers that stronger sanctions will be imposed should they not take advantage of the SCSD Initiative.

In this particular action, the 79 investment firms failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes when a lower-cost share class of the same fund was available.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, lpl financial, raymond james, oppenheimer, wells fargo, scsd initiative

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