Defendant Name:
Lockwood Advisors, Incorporated
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Bank of New York Mellon Corporation
SIC Code:
6022
CUSIP:
06405810
Document Reference:
IA-4984-s
Document Details
Legal Case Name
In the Matter of Lockwood Advisors Incorporated
Document Name
SEC Charges Investment Adviser for Compliance Failures Relating to Wrap Fee Programs
Document Date
14-Aug-2018
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
The Commission stated that: "As a sponsor of wrap fee programs, Lockwood offers investors a selection of various subadvisers to choose from, which in turn select investments on their behalf. Those subadvisers typically directly trade through the wrap fee program's participating broker-dealer because the cost of execution is included in the annual wrap fee that each client pays to participate in the program. However, if a subadviser trades away by choosing a different broker- dealer to execute a particular trade, the client often incurs additional transaction costs. The SEC's order found that Lockwood failed to adopt and implement policies and procedures requiring it to gather information about subadvisers' trading away and requiring it to disclose that information to wrap fee program clients so that they could make informed investment decisions."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Other Compliance Related Undertaking
Monetary Penalties:
Civil Penalty
Individual:
$200,000.00
Shared: