Articles Tagged with Financial Advisor Misconduct Lawyer

When A Broker-Dealer’s Conflicts of Interest Costs Investors Money. Cabaret, Grant & Co. To Pay Over $6M For Purportedly Profiting From Recommending Certain Mutual Funds and Money Market Funds Over Others

The US Securities and Exchange Commission (SEC) is ordering investment advisory and brokerage firm Cadaret, Grant & Co. to pay over $6M for alleged conflicts of interest that allowed it to profit when clients would invest in certain mutual funds and money market funds. According to the regulator, between January 2017 and March 2022, the Atria subsidiary committed breaches of fiduciary duty and violated key regulations under the Investment Advisers Act of 1940.

The SEC contends that Cadaret Grant received revenue-sharing payments from an unaffiliated clearing broker whenever advisory clients made investments in certain money market funds and mutual funds. The Commission said that, as a result, Cadaret Grant clients ended up indirectly paying fees when they were part of the expense ratio as investors of these mutual fund share classes.