VanEck fined $1.8M over influencer promo nondisclosure
By 
Kyle Brasseur2024-02-19T15:00:00
A New York-based investment adviser agreed to pay $1.75 million as part of a settlement with the Securities and Exchange Commission (SEC) regarding its alleged failure to properly disclose the planned involvement of a social media influencer in the launch of an exchange-traded fund (ETF).
Van Eck Associates Corp. was faulted for not implementing policies and procedures reasonably designed to prevent the violations of the Advisers Act related to the nondisclosure, the SEC announced in a press release Friday.
The March 2021 launch of the VanEck Social Sentiment ETF included plans to retain a popular social media influencer to aid in promotion. The involvement of the influencer led to changes VanEck agreed to in the proposed licensing fee structure to “incentivize the influencer’s marketing and promotion efforts,” the SEC said in its order.
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