- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2023-01-20T21:21:00
Massachusetts-based investment adviser Moors & Cabot reached an approximately $1.9 million settlement with the Securities and Exchange Commission (SEC) over allegations the firm didn’t fairly disclose conflicts of interest associated with incentive payments it received from two unaffiliated clearing brokers.
The firm was also censured after it failed to implement written compliance policies and procedures aimed at preventing violations of the Advisers Act, according to the SEC’s order filed Thursday.
The two clearing brokers executed securities transactions and handled related recordkeeping on behalf of Moors & Cabot between at least February 2017 and September 2021, the SEC stated. Services they provided included transferring customers’ uninvested cash into interest-bearing bank accounts, called cash sweep programs, and providing loans so customers could buy securities.
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