Story behind nearly $100 million SEC fine: Failed to heed compliance’s advice

In 2014, an internal compliance report raised concerns that the incentive compensation structure was significantly affecting WMAs’ behavior, causing them to focus on recommending managed solutions because they paid the most compensation. The report noted that as a result, “it is not possible to claim that the agents are ‘product neutral.’” Respondent did not take any steps to address the findings in this compliance report at the time.

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