Defendant Name: Summit Financial Group, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: RCS Capital Corp.
SIC Code: 6153
CUSIP: 74937W10

Initial Case Details

Legal Case Name In the Matter of Summit Financial Group, Inc.
First Document Date 13-Nov-2020
Initial Filing Format Administrative Action
File Number 3-20149
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Section 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 13-Nov-2020
Headline Total Penalty and Disgorgement $603,799

Related Documents:

IA-5626 13-Nov-2020 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On November 13, 2020, the SEC instituted settled cease-and-desist proceedings against Summit Financial Group, Inc. The SEC stated: "This matter concerns Summit Financial’s failure to adopt and implement policies and procedures reasonably designed to prevent unsuitable investments in volatility-linked exchange traded products (“ETPs”) between 2016 and 2018 (the “Relevant Period”). As a result, Summit Financial investment adviser representatives (“IARs”) recommended to their clients that they purchase and hold one of the ETPs for durations that were inconsistent with the purpose of the product, as described in its offering documents."
2020-282_3-20149 13-Nov-2020 Press Release--Administrative Proceeding
SEC Charges Investment Advisory Firms and Broker-Dealers in Connection with Sales of Complex Exchange-Traded Products
The SEC stated that: "[It] filed settled actions against three investment advisory firms and two dually-registered broker-dealer and advisory firms for violations that related to unsuitable sales of complex exchange-traded products to retail investors. The sales occurred between January 2016 and April 2020. These actions are the first arising from investigations generated by the Division of Enforcement's Exchange-Traded Products Initiative, which utilized trading data analytics to uncover potential unsuitable sales. The five actions filed today -- against American Portfolios Financial Services/American Portfolios Advisors Inc., Benjamin F. Edwards & Company Inc., Royal Alliance Associates Inc., Securities America Advisors Inc., and Summit Financial Group Inc. -- will result in the return of over $3 million to harmed investors. "