Defendant Name: Oppenheimer Asset Management Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Oppenheimer Holdings, Inc
SIC Code: 6221
CUSIP: 68379710

Document Reference: IA-5137

Document Details

Legal Case Name In the Matter of Oppenheimer & Co. Inc. and Oppenheimer Asset Management Inc.
Document Name 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
Document Date 11-Mar-2019
Document Format Administrative Proceeding
File Number 3-19040
Allegation Type Investment Advisers/Investment Companies
Document Summary The Commission stated: "These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by affiliated registered investment advisers Opco and OAM in connection with mutual fund share class selection practices and the fees Respondents and their associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 ("12b-1 fees")."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
"Respondents shall deposit the full amount of the disgorgement and prejudgment interest (the “Distribution Fund”) into an escrow account [...] Respondents shall be responsible for administering the Distribution Fund"
Self Reporting to SEC
Monetary Penalties:

Disgorgement

Individual:     Shared:     $3,169,123.00
Shared with: Oppenheimer & Co. Inc.

Pre-Judgment Interest

Individual:     Shared:     $359,254.00
Shared with: Oppenheimer & Co. Inc.

Total Penalty

Individual:     Shared:     $3,528,377.00
Shared with: Oppenheimer & Co. Inc.

Related Documents:

2019-28_3-19040 11-Mar-2019 Press Release--Administrative Proceeding
SEC Share Class Initiative Returning More Than $125 Million to Investors
On March 11, 2019, the SEC "announced settled chargesagainst 79 investment advisers who will return more than $125 million to clients, with a substantial majority of thefunds going to retail investors. The actions stem from the SEC's Share Class Selection Disclosure Initiative , which the SEC's Division of Enforcement announced in February 2018 in an effort to identify and promptly correct ongoing harm in the sale of mutual fund shares by investment advisers. The initiative incentivized investment advisers to self-report violations of the Advisers Act resulting from undisclosed conflicts of interest, promptly compensate investors, and review and correct fee disclosures. The orders issued today address advisers who directly or indirectly received 12b-1 fees for investments selected for their clients without adequate disclosure, including disclosures that were inconsistent with the advisers' actual practices."

Other Defendants in Action:

Oppenheimer & Co. Inc.