SEC v. Commonwealth Equity Services, LLC

Commonwealth Equity Services, LLC allegedly failed to disclose material conflicts of interest related to a revenue sharing agreement under which Commonwealth received payments from its clearing firm when Commonwealth invested client assets in certain classes of mutual funds, according to the SEC. Commonwealth allegedly breached its fiduciary duty to its advisory clients in violation of Section 206(2) of the Advisers Act and Commonwealth's failure to adopt and to implement written policies and procedures reasonably designed to ensure that it identified and disclosed these conflicts of interest allegedly violated Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder, according to the SEC.

Summary generated from official Securities and Exchange Commission press release