The SEC's Division ofEnforcement will recommend that those scores of firms that haveself-disclosed violations of the 1940 Act will not be subject tocivil penalties, but will be required to return investment lossesthat resulted in costlier fund recommendations to affectedinvestors. (Photo: Diego Radzinschi/ALM)

The Security and Exchange Commission's Share ClassSelection Disclosure Initiative has brought the mutual fundrecommendations of “scores” of RIAs under investigation, accordingto the agency's FY 2018 Annual Report.

The SCSD Initiative launched in February and ended in June, andwas designed to rein in “potential widespread violations” of theInvestment Advisers Act of 1940.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.