Patrick Donachie

According to the commission, TradeZero publicly told investors it refused its clearing broker’s demands to restrict trading, when in fact it stopped trading certain stocks.

The firm announced four new hires for the region, including additions from TIAA, First Republic Bank and JPMorgan Chase. Most of the new hires will operate out of New York City.

The charges come as investment advisors increasingly use ESG metrics to appeal to investors, according to SEC Enforcement Division Deputy Director Sanjay Wadhwa.

President Melanie Senter Lubin said the rule would offer state regulators additional means to take action against registrants that don't pay up.

SEC Enforcement Division Director Gurbir S. Grewal said the enforcement action indicated that 'AML obligations are sacrosanct' for registrants.

The SEC claims the RIA violated its fiduciary duty when it did not inform clients about the conflicts related to revenue-sharing agreements and must return funds to affected investors.

The SEC chair told the House Appropriations Committee he would use the additional funds to keep pace with growing number of RIAs, scrutinize broker/dealers' Reg BI compliance, and get back to in-person examinations.

The high percentage of blank responses in a section of Form ADV related to the SEC's new marketing rule could indicate that RIAs are still grappling with how to comply with the regulation, according to a new analysis...