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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Jeff Dale2023-09-27T18:23:00
California-based investment adviser AssetMark agreed to pay more than $18 million to settle allegations by the Securities and Exchange Commission (SEC) regarding undisclosed conflicts of interest involving its affiliate’s cash sweep program and its revenue-sharing arrangements with third parties.
AssetMark agreed to pay a $9.5 million penalty and disgorgement and prejudgment interest of more than $8.8 million. The firm, a wholly owned subsidiary of AssetMark Financial Holdings, consented to a cease-and-desist order requiring it to be censured and meet certain compliance undertakings, the SEC announced in a press release Tuesday.
AssetMark breached its fiduciary duty to clients by failing to disclose its fellow subsidiary, ATC, profited from the cash sweep program, the SEC said. Further, AssetMark allegedly received support payments from certain third-party custodians without full and fair disclosure of the associated conflicts of interest.
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News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
Subscribe now for $365
Our lowest price ($1 per day) for one year.
2023-09-27T19:43:00Z By Jeff Dale
The Securities and Exchange Commission ordered New York-based investment adviser Bruderman Asset Management and its principal to pay a total of $250,000 over their alleged failure to disclose misuse of profits raised from clients.
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