The Securities and Exchange Commission (SEC) has highlighted a compliance failure in a New York registered investment adviser’s handling of client advisory fees that its affiliated broker-dealer received from third-party private fund managers.
From 2019 to January 2022, Papamarkou Wellner Asset Management, a New York registered investment adviser with $358 million in assets under management, did not deduct from client advisory fees a portion of the compensation its affiliated broker-dealer, Papamarkou Wellner & Co., received from six third-party private fund managers, a violation of the Advisers Act.
