Defendant Name:
Summit Financial Group, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
RCS Capital Corp.
SIC Code:
6153
CUSIP:
74937W10
Document Reference:
IA-5626
Document Details
Legal Case Name
In the Matter of Summit Financial Group, 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
13-Nov-2020
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On November 13, 2020, the SEC instituted settled cease-and-desist proceedings against Summit Financial Group, Inc. The SEC stated: "This matter concerns Summit Financial’s failure to adopt and implement policies and procedures reasonably designed to prevent unsuitable investments in volatility-linked exchange traded products (“ETPs”) between 2016 and 2018 (the “Relevant Period”). As a result, Summit Financial investment adviser representatives (“IARs”) recommended to their clients that they purchase and hold one of the ETPs for durations that were inconsistent with the purpose of the product, as described in its offering documents."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Fair Funds
Monetary Penalties:
Disgorgement
Individual:
$3,083.59
Shared:
Civil Penalty
Individual:
$600,000.00
Shared:
Pre-Judgment Interest
Individual:
$715.49
Shared:
Total Penalty
Individual:
$603,799.08
Shared: