SEC Charges State-Registered Investment Adviser and Its Owner with Fraudulent Fee Practices

On June 2, 2025, the SEC accused a state-registered investment adviser and its owner/managing member of breaching their fiduciary duties. The SEC’s complaint alleged that the defendants defrauded their advisory clients by making false and misleading fee disclosures....

FINRA is Scrutinizing the Conversion of Brokerage Accounts to Advisory Accounts

Although Registered Investment Advisers (RIAs) are not subject to FINRA oversight, dually registered firms may encounter problems with the self-regulatory organization (SRO). On May 15, 2025, Tracey Longo, Editor and Columnist for Financial Advisor Magazine reported...

RIA Disciplined for Improper Wrap Program Conversions

On March 19, 2025, the SEC obtained final judgment against a Registered Investment Adviser (RIA) that allegedly breached its fiduciary duty when making recommendations regarding wrap accounts. The firm also failed to disclose material conflicts of interest. The RIA...