SEC Fines New Jersey Brokerage and RIA Firms $240,000 for Impending Client Reporting

Posted on November 21st, 2024 at 1:17 PM
SEC Fines New Jersey Brokerage and RIA Firms $240,000 for Impending Client Reporting

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (SEC) has fined Nationwide Planning Associates, a New Jersey-based independent brokerage, and two affiliated registered investment advisory firms, NPA Asset Management and Blue Point Strategic Wealth, $240,000. According to AdvisorHub, the SEC had alleged that the firms used non-disclosure agreements (NDAs) to prevent clients from reporting securities law violations.

Between May 2021 and February 2024, the firms required 11 clients to sign confidentiality agreements as part of settlements related to losses from alleged securities law breaches. Some agreements prohibited clients from reporting disputes to the SEC or other securities regulators, which the SEC stated violated federal laws.

Nationwide Planning Associates agreed to pay $160,000, while its affiliated RIAs, NPA Asset Management, and Blue Point Strategic Wealth, will pay $70,000 and $10,000, respectively.

In addition to the fines, the firms agreed to cease using the problematic non-disclosure clauses and were censured by the SEC.

AdvisorHub reports that, although the firms included a clause allowing clients to respond to unsolicited inquiries from regulators, the SEC deemed it insufficient. Once notified of the violations, the firms ceased using the NDAs and communicated with affected clients to release them from the agreements, which the SEC considered when determining penalties.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

March 16, 2026
Concorde Investment Services Faces Scrutiny Over Sales of Inspired Healthcare Private Investments

Concorde Investment Services is facing increased scrutiny following the bankruptcy of Inspired Healthcare Capital, whose private investment offerings were widely sold through independent broker dealers, according to InvestmentNews.

March 13, 2026
Connecticut Advisor Pleads Guilty to Ponzi-Like Investment Fraud and Tax Evasion

Federal prosecutors announced that investment adviser John A.

March 12, 2026
Cape Coral Becomes Ground Zero for Private Lending Strains in Post-Pandemic Housing Market

Cape Coral, Florida, long a magnet for out-of-state real estate investors, now illustrates the growing risks of private lending in residential development.