By Adrianne Appel2022-09-20T20:10:00
Investment adviser Waddell & Reed will pay about $775,000 as part of a settlement with the Securities and Exchange Commission (SEC) for compliance failures and breaching its fiduciary duty.
Waddell, based in Kansas, didn’t follow its own compliance policies that required it to check if “wrap” fees were appropriate, according to the SEC’s order. A wrap fee is a grand charge for a bundle of services and is typically relevant to active traders.
At Waddell, some clients who traded infrequently were being charged wrap fees as if they were active traders, a practice referred to as “reverse churning,” the SEC stated. These instances might have been halted earlier if Waddell followed its compliance policies by conducting quarterly reviews of the wrap program and converting certain accounts to brokerage accounts, the agency said.
2025-10-08T20:08:00Z By Ruth Prickett
Private companies that are keen to trade their shares but do not wish to become listed have gained another way to trade their shares. The U.K. government completed its initial review and published rules for the system in June.
2025-10-08T18:28:00Z By Adrianne Appel
Charlie Javice, a former CEO who duped JPMorgan Chase into purchasing her start up company for $175 million, has been ordered to forfeit more than $22 million by the Department of Justice (DOJ) and to spend 7 years in jail.
2025-10-07T20:32:00Z By Jaclyn Jaeger
Emerging technologies, like artificial intelligence (AI) and advanced data analytics, can improve audit quality in significant ways. As the regulatory overseer of public-company audits, the Public Company Accounting Oversight Board (PCAOB) has a critical role to play by ensuring that its audit standards evolve as the audit profession evolves.
2025-10-07T16:08:00Z By Adrianne Appel
Georgia Tech Research Corp. (GTRC) has agreed to pay $875,000 to settle allegations first raised by two compliance officers that its cybersecurity protocols violated acceptable standards for defense contractors, the Department of Justice (DOJ) said.
2025-10-06T17:12:00Z By Adrianne Appel
Tractor Supply Company has agreed to get into compliance with California’s consumer privacy law and to pay a $1.35 million fine—the largest yet by California—to settle allegations it violated the privacy rights of customers and job applicants.
2025-10-06T16:46:00Z By Aly McDevitt
A single $33,000 shipment to Iran triggered a six-figure penalty and years of compliance oversight for biotechnology company LuminUltra Technologies, Inc.
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