- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
Investment adviser Waddell & Reed will pay about $775,000 as part of a settlement with the Securities and Exchange Commission (SEC) for compliance failures and breaching its fiduciary duty.
Waddell, based in Kansas, didn’t follow its own compliance policies that required it to check if “wrap” fees were appropriate, according to the SEC’s order. A wrap fee is a grand charge for a bundle of services and is typically relevant to active traders.
At Waddell, some clients who traded infrequently were being charged wrap fees as if they were active traders, a practice referred to as “reverse churning,” the SEC stated. These instances might have been halted earlier if Waddell followed its compliance policies by conducting quarterly reviews of the wrap program and converting certain accounts to brokerage accounts, the agency said.
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USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
Any product that uses AI needs to be safety assessed for its entire lifespan under new rules that went into effect recently across the EU. Experts warned companies using AI to tailor products could be classed as “manufacturers” and face the same duty of care as developed.
National Philanthropic Trust announced the appointment of Tamara Watts, vice president, legal and general counsel for The Susan Thompson Buffett Foundation, to its board of trustees.
Becton Dickinson medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission said.
The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
A Minnesota transportation company agreed to pay nearly $258,000 to settle allegations that a subsidiaries violated sanctions against Cuba and Iran more than 80 times, the U.S. Treasury Department’s Office of Foreign Assets Control said.
