On November 13, 2020, the SEC instituted settled cease-and-desist proceedings against Securities America Advisors, Inc. The SEC stated: "This matter concerns SAA’s failure to adopt and implement policies and procedures reasonably designed to prevent investments in two volatility-linked exchange-traded products (“ETPs”) that were not suitable for SAA clients. SAA, among other things, failed to implement its policies and procedures that required SAA investment adviser representatives (“IARs”) to have an “adequate basis” to make recommendations to, and investments for, clients that were suitable in light of their investment profiles. SAA additionally failed to adopt reasonably designed policies and procedures directed specifically at volatility-linked ETPs. SAA clients suffered significant losses from investments in these 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. "

The Commission stated: "IT IS HEREBY ORDERED that the Division’s request for an extension of time until January 31, 2022 to submit a Proposed Plan of Distribution is granted."

The Commission stated: "IT IS ORDERED that Miller Kaplan . . . is appointed the Tax Administrator for the QSF in the above-referenced proceeding."

The Commission ordered that: "Analytics is appointed as the fund administrator . . . and shall obtain a bond . . . in the amount of $603,776.82."

The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has submitted to the Commission a proposed plan of distribution (the “Proposed Plan”) for the distribution of monies paid in the above-captioned matter."

The Commission stated: "The Division of Enforcement submits this Proposed Plan of Distribution (the “Plan”) to the United States Securities and Exchange Commission (the “Commission”) . . . This Plan provides for the distribution of a Fair Fund (the “Fair Fund”), comprised of disgorgement, prejudgment interest, and civil money penalties paid by Securities America Advisors, Inc. (“Respondent” or “SAA”) in the above-captioned matter."

The Commission stated: "it is hereby ordered . . . that the Proposed Plan is approved, and the approved Plan of Distribution shall be posted simultaneously with this order on the Commission’s website at www.sec.gov."

The Commission stated: "The Division of Enforcement submitted this Plan of Distribution (the “Plan”) to the United States Securities and Exchange Commission . . . . This Plan provides for the distribution of a Fair Fund (the “Fair Fund”), comprised of disgorgement, prejudgment interest, and civil money penalties paid by Securities America Advisors, Inc. (“Respondent” or “SAA”) in the above-captioned matter."

The Commission ordered that: "Commission staff shall transfer $415,204.48 from the Fair Fund to the Fair Fund’s escrow account at Alerus Financial, NA, and the Fund Administrator shall distribute such monies to harmed investors in accordance with the Plan."