{"id":77458,"date":"2021-03-05T01:07:55","date_gmt":"2021-03-05T06:07:55","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=77458"},"modified":"2021-03-05T01:07:55","modified_gmt":"2021-03-05T06:07:55","slug":"investment-adviser-charged-with-failing-to-disclose-conflicts","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2021\/investment-adviser-charged-with-failing-to-disclose-conflicts.html","title":{"rendered":"Investment Adviser Charged with Failing to Disclose Conflicts"},"content":{"rendered":"\n<p>(HedgeCo.Net) The U.S. District Court for the District of Massachusetts has entered a final consent judgment against <strong>Bolton Securities Corporation, <\/strong>d\/b\/a <strong>Bolton Global Asset Management<\/strong>, in connection with the SEC&#8217;s allegations that Bolton Securities failed to disclose material conflicts of interest related to mutual fund 12b-1 fees and principal trading compensation generated from client investments.<\/p>\n\n\n\n<p>On November 4, 2019, the SEC <a href=\"https:\/\/www.sec.gov\/litigation\/litreleases\/2019\/lr24660.htm\">charged<\/a> Bolton Securities with failing to adequately disclose conflicts of interest arising from the receipt of 12b-1 fees associated with mutual fund share classes held by Bolton Securities clients, including when less expensive share classes of the same mutual funds that did not charge 12b-1 fees were available. The SEC alleged in its complaint that those 12b-1 fees were paid to an affiliated broker-dealer that was under common ownership and control with Bolton Securities, which in turn paid some of the fees to Bolton Securities&#8217; investment adviser representatives. In addition, the SEC&#8217;s complaint alleged that Bolton Securities used the principal trading account of its affiliated broker-dealer to engage in self-dealing transactions with its advisory clients, which generated principal trading compensation for the broker-dealer. As alleged, Bolton Securities engaged in these transactions without obtaining client consent and without providing disclosure sufficient for clients to provide informed consent for such transactions.<\/p>\n\n\n\n<p>Without admitting or denying the allegations of the SEC&#8217;s complaint, Bolton Securities consented to the entry of the final judgment enjoining it from violating Sections 206(2), 206(3), and 206(4) of the Investment Advisers Act and Rule 206(4)-7 thereunder, and ordering it to pay disgorgement and prejudgment interest of $224,994 and a civil penalty of $225,000. The judgment provides that those monetary remedies will be distributed to harmed investors from a Fair Fund.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The U.S. District Court for the District of Massachusetts has entered a final consent judgment against Bolton Securities Corporation, d\/b\/a Bolton Global Asset Management, in connection with the SEC&#8217;s allegations that Bolton Securities failed to disclose material conflicts of [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-77458","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/77458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=77458"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/77458\/revisions"}],"predecessor-version":[{"id":77459,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/77458\/revisions\/77459"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=77458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=77458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=77458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}