SEC Settles Charges with Firm for Making Misleading Statement about Broker Compensation

A brokerage firm agreed to settle charges that it made misleading statements about its broker compensation. The firm falsely stated that its advisors were compensated based on client performance and that: "no one is paid on commission". The firm made this statement on its private banking website.

According to an SEC investigation, the compensation awarded was not based on client performance. Instead, advisors were paid salaries and discretionary bonuses based on a number of other factors.

Without admitting or denying the findings, the firm consented to the entry of the SEC Order. The firm also agreed to (i) pay a $4 million penalty, (ii) be censured and (iii) cease and desist from committing further violations.