Under a new self-reporting initiative just announced by the SEC staff, the SEC\u2019s Enforcement Division will recommend \u201cstandardized, favorable settlement terms\u201d to investment advisers that self-report that they failed to disclose conflicts of interest associated with the receipt of 12b-1 fees.\u00a0 This is the latest effort by the SEC to crack\u2013down on inadequate disclosure of adviser receipt of 12b-1 fees in connection with advisory accounts where a lower -cost share class of the same mutual fund was available for the advisory clients.\u00a0The SEC States that among other things, the Division will recommend settlements that will require the adviser to \u201cdisgorge its ill-gotten gains and pay those amounts to harmed clients. \u201d\u00a0 The plus:\u00a0 no civil monetary penalty. Investment advisers must notify the Division of Enforcement of their intent to self-report no later than June 12, 2018.<\/p>\n
Read More Here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Under a new self-reporting initiative just announced by the SEC staff, the SEC\u2019s Enforcement Division will recommend \u201cstandardized, favorable settlement terms\u201d to investment advisers that self-report that they failed to disclose conflicts of interest associated with the receipt of 12b-1 fees.\u00a0 This is the latest effort by the SEC to crack\u2013down on inadequate disclosure of … Continue reading 12b-1 fees — A Brand New Twist<\/span>