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

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

July 29, 2025
Stifel Faces Mounting Arbitration Losses Over Chuck Roberts' Structured Note Sales

Stifel Financial has reached another substantial settlement connected to a controversial structured note strategy promoted by Miami-based broker Chuck A. Roberts.

July 28, 2025
SEC Bars California Advisor for $4.6 Million Client Theft and Falsified Filings

The Securities and Exchange Commission (SEC) has permanently barred Andrew Nash, a Santa Barbara-based investment adviser, from the securities industry after alleging he misappropriated $4.6 million from a client and falsified regulatory filings to cover up the theft.

July 25, 2025
Former Merrill Lynch Broker Settles SEC Case Over $3 Million Investment Fraud

A former Dallas-based broker has settled civil charges with the Securities and Exchange Commission (SEC) after stealing nearly $3 million from his clients over nine years.