The Massachusetts Securities Division charged Scottrade onThursday with violating the impartial conduct standards laid out inthe Labor Department's fiduciary rule, which tookeffect on June 9, 2017.

Commonwealth Secretary William Galvin, the state's topsecurities regulator, charged the broker-dealer with “dishonest andunethical activity and failure to supervise” for conducting salescontests that violated Labor's impartial conduct standards.

Despite Scottrade adopting a rule to adhere to the impartialconduct standards that prohibited sales quotas, appraisals,bonuses, contests and other incentives for retirement orprospective retirement account clients, the broker-dealer “held atleast two sales contests which included retirement assets” afterJune 9, the complaint states.

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Melanie Waddell

Melanie is senior editor and Washington bureau chief of ThinkAdvisor. Her ThinkAdvisor coverage zeros in on how politics, policy, legislation and regulations affect the investment advisory space. Melanie’s coverage has been cited in various lawmakers’ reports, letters and bills, and in the Labor Department’s fiduciary rule in 2024. In 2019, Melanie received an Honorable Mention, Range of Work by a Single Author award from @Folio. Melanie joined Investment Advisor magazine as New York bureau chief in 2000. She has been a columnist since 2002. She started her career in Washington in 1994, covering financial issues at American Banker. Since 1997, Melanie has been covering investment-related issues, holding senior editorial positions at American Banker publications in both Washington and New York. Briefly, she was content chief for Internet Capital Group’s EFinancialWorld in New York and wrote freelance articles for Institutional Investor. Melanie holds a bachelor’s degree in English from Towson University. She interned at The Baltimore Sun and its suburban edition.