SEC Fines New Jersey Brokerage and RIA Firms $240,000 for Impending Client Reporting
From the desk of Jim Eccleston at 蘑菇传媒
The Securities and Exchange Commission (SEC) has fined Nationwide Planning Associates, a New Jersey-based independent brokerage, and two affiliated registered investment advisory firms, NPA Asset Management and Blue Point Strategic 蘑菇传媒alth, $240,000. According to AdvisorHub, the SEC had alleged that the firms used non-disclosure agreements (NDAs) to prevent clients from reporting securities law violations.
Between May 2021 and February 2024, the firms required 11 clients to sign confidentiality agreements as part of settlements related to losses from alleged securities law breaches. Some agreements prohibited clients from reporting disputes to the SEC or other securities regulators, which the SEC stated violated federal laws.
Nationwide Planning Associates agreed to pay $160,000, while its affiliated RIAs, NPA Asset Management, and Blue Point Strategic 蘑菇传媒alth, will pay $70,000 and $10,000, respectively.
In addition to the fines, the firms agreed to cease using the problematic non-disclosure clauses and were censured by the SEC.
AdvisorHub reports that, although the firms included a clause allowing clients to respond to unsolicited inquiries from regulators, the SEC deemed it insufficient. Once notified of the violations, the firms ceased using the NDAs and communicated with affected clients to release them from the agreements, which the SEC considered when determining penalties.
蘑菇传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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