California-based investment adviser AssetMark agreed to pay more than $18 million to settle allegations by the Securities and Exchange Commission (SEC) regarding undisclosed conflicts of interest involving its affiliate’s cash sweep program and its revenue-sharing arrangements with third parties.
AssetMark agreed to pay a $9.5 million penalty and disgorgement and prejudgment interest of more than $8.8 million. The firm, a wholly owned subsidiary of AssetMark Financial Holdings, consented to a cease-and-desist order requiring it to be censured and meet certain compliance undertakings, the SEC announced in a press release Tuesday.
