A recent SEC settlement with a large brokerage entity may be a precursor for future cases focused on retail firms. It highlights the SEC’s current focus on complex financial products and harm to investors, and in this case, a firm providing misleading information about its wrap fee programs. Founder and President Amy Lynch explains that with the increase in the complexity of offerings to individuals, the SEC is bound to pursue investigations in this area. Ms. Lynch states that the SEC is interested in ensuring firms have proper disclosures on trade execution and other services in their wrap fee programs and marketing materials. See InvestmentNews, “SEC puts pressure on fee transparency in increasingly complex wrap accounts“
