SEC wants advisers to be on top of fees charged (The Wall Street Journal)

The SEC has previously expressed concern that investment adviser firms are doing a poor job of ensuring their clients are being accurately charged fees. Expect the SEC to continue to focus on what they see as frequent errors by advisers in miscalculating and overcharging individual investors. When these mistakes occur, it is not necessarily indicative of wrongdoing and is more typically the result of firms failing to update disclosures and changes to fees. FrontLine’s Founder and President Amy Lynch states that investor portfolios can become more complex over time, which may lead to miscalculated fees. Ms. Lynch explains that when various types of fees are charged and an error occurs, the miscalculated fee, if automatically assessed, would keep recurring until it’s caught and corrected. See The Wall Street Journal (subscription required), “How to Tell if Your Financial Adviser is Overcharging You“