SEC Sanctions and Settles Charges against an Investment Adviser for Best Execution Failures in Selecting Mutual Fund Share Classes

The SEC sanctioned a Nebraska-based investment advisory firm and its owner for failing to seek the most beneficial terms reasonably available when investing in mutual fund shares for three funds that the company managed. The SEC found that Manarin Investment Counsel, Ltd. and Ronald R. Manarin violated "best execution" by consistently selecting higher cost mutual fund shares for the three fund clients, even though cheaper shares in the same mutual funds were available. The advisers' motivation was to earn higher 12b-1 fees through an affiliated broker-dealer.

See: SEC Order; SEC Press Release.