SEC Fines RiverFront Investment $300,000 for Overcharging Clients

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SEC Fines RiverFront Investment $300,000 for Overcharging Clients

Postby » Wed Jul 13, 2016 9:06 pm

Virginia-based RiverFront Investment Group will pay a $300,000 penalty for overcharging clients to cover the cost of several services bundled together, according to a regulatory announcement from the U.S. Securities and Exchange Commission (SEC).

The SEC claims that RiverFront Investment failed to properly prepare clients for additional transaction costs beyond the “wrap fees” they typically pay. Wrap fees program allow an investment advisor to charge one straightforward fee to their clients, simplifying the process for both the advisor and the customer.

RiverFront agreed to pay a penalty of $300,000 to settle the charges without admitting or denying them. In addition, it will ... (read more)

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