Defendant Name:
Hilltop Securities Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Hilltop Holdings, Inc.
SIC Code:
6022
CUSIP:
43274810
Document Reference:
IA-5393
Document Details
Legal Case Name
In the Matter of Hilltop Securities, Inc. and Hilltop Securities Independent Network, 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
30-Sep-2019
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On September 30, 2019, the SEC instituted settled administrative and cease and desist proceedings against against Hilltop Securities, Inc. ("HTS") and its affiliate Hilltop Securities Independent Network, Inc. ("HTIN"). The SEC stated: "These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment advisers HTS and HTIN in connection with mutual fund share class selection practices and the fees Respondents 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”), less monies already distributed to investors, into an escrow account . . . Respondents shall be responsible for administering the Distribution Fund"
Self Reporting to SEC
Monetary Penalties:
Disgorgement
Individual:
Shared:
$736,497.48
Shared with: Hilltop Securities Independent Network, Inc.
Pre-Judgment Interest
Individual:
Shared:
$74,287.92
Shared with: Hilltop Securities Independent Network, Inc.
Total Penalty
Individual:
Shared:
$810,785.40
Shared with: Hilltop Securities Independent Network, Inc.
Other Defendants in Action:
