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SEC calls on advisors to self-report fund fee conflicts


Under a recently announced SEC initiative, investment advisors won’t face financial penalties if they self-report certain share class violations on mutual funds and promptly return money to harmed investors, ThinkAdvisor reports. The Share Class Selection Disclosure Initiative “reflects our effort to allocate our resources in a way that effectively targets the continued failure by some advisers to disclose conflicts of interest around share class selection and, importantly, is intended to facilitate the prompt return of money to victimized investors,” said Stephanie Avakian of the SEC’s Division of Enforcement in a press release. See the full story below. Also, financial writer Sara Grillo warns advisors to pay attention to correctly citing sources in their published content or face potential legal repercussions. In a column at Advisor Perspectives, Grillo lists citation issues that can get an advisor in trouble, including not properly citing or not citing at all, using charts without permission, and “snatching” Google images. See the link to her column below.

In 12b-1 Fee Crackdown, SEC Urges Advisors to Police Themselves

By Melanie Waddell

Source: ThinkAdvisor

The Securities and Exchange Commission said Monday that its enforcement division has launched an initiative designed to protect investment advisors from financial penalties if they self-report certain mutual fund share-class violations and return the money to harmed investors.


Six Legal Risks that will Zap You when Publishing Content

by Sara Grillo

Source: Advisor Perspectives

Advisors improperly cite or don’t cite their sources. Most advisors do this without even realizing it. This is a boring topic, but please read this to protect yourselves from legal problems. I’ll make this as exciting as possible.