Defendant Name: Waddell & Reed, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: LPL Financial Holdings Inc.
SIC Code: 9999
CUSIP: 50212V10

Initial Case Details

Legal Case Name In the Matter of Waddell & Reed, LLC
First Document Date 19-Sep-2022
Initial Filing Format Administrative Action
File Number 3-21107
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 19-Sep-2022
Headline Total Penalty and Disgorgement $775,589

Related Documents:

34-95828 19-Sep-2022 Administrative Proceeding
Order Instituting Administrative And Cease-and-Desist Proceedings, Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and 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
The Commission stated: "These proceedings arise out of breaches of fiduciary duty and compliance failures by Waddell & Reed, Inc. ("Waddell"), a former registered investment adviser and broker-dealer. Specifically, Waddell failed to take reasonable steps with respect to certain clients in its wrap fee investment advisory program known as MAPLatitude after their accounts were flagged in Waddell's systems for potential "reverse churning.""
34-95828-s 19-Sep-2022 Administrative Summary
SEC Charges Investment Adviser for Failing to Conduct Adequate Follow-Up After Client Accounts Were Flagged for Potential Reverse Churning
On September 19, 2022, the SEC "announced settled charges against Waddell & Reed, LLC, a former registered investment adviser based in Kansas, for misconduct related to one of its wrap fee programs."