Jonathan Green Offers Insights on How Investment Advisers Can Avoid Litigation in CQ Roll Call

As seen in CQ Roll Call’s “SEC Targets Investment Adviser Accords”

September 3, 2014

CQ Roll Call reports that the Securities and Exchange Commission (SEC) has increased its scrutiny of revenue-sharing arrangements between investment advisers and broker-dealers. The SEC recently charged investment firm The Robare Group with fraud for failing to disclose an agreement with Fidelity Investment broker-dealers. While the agreement, which allowed Robare to collect a percentage of client dollars invested in specific mutual funds, was not illegal, the SEC requires any such agreements to be disclosed via an SEC filing so that clients can be made aware of the arrangements.

According to Kaye Scholer White Collar Litigation & Internal Investigations Partner Jonathan Green, who is a former SEC attorney, investment advisers should "proactively review and disclose all sources of compensation” in order to avoid litigation. 

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