The SEC’s New Free Pass on Conflicts of Interest

Shutterstock photo
The SEC's New Free Pass on Conflicts of Interest


The SEC says that a lack of fee disclosures related to conflicts of interest may be rife across the wealth management industry. Now the SEC is giving a free pass to those that have failed to disclose. So long as investors come clean and give money back to investors, they won't be punished. The biggest abuses seem to be in the lack of disclosure of mutual fund fees, which goes against the rules laid out in the Investment Advisers Act of 1940. Those who come forward will not face civil monetary penalties, but that special treatment will only be for those who come forward voluntarily.

FINSUM : Hard to say how big of a problem this is. But it does sound like this might be a good way to clean up the issue quickly.

  • SEC
  • conflicts of interest
  • fee disclosure
  • fiduciary

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Wealth Management

More from FINSUM




Research Brokers before you trade

Want to trade FX?