Defendant Name: Summit Financial Group, Inc.

Defendant Type: Subsidiary of Public Company

Document Reference: 2020-282_3-20149

Document Details

Legal Case Name In the Matter of Summit Financial Group, Inc.
Document Name SEC Charges Investment Advisory Firms and Broker-Dealers in Connection with Sales of Complex Exchange-Traded Products
Document Date 13-Nov-2020
Document Format Administrative Proceeding
File Number 3-20149
Allegation Type Investment Advisers/Investment Companies
Document Summary The SEC stated that: "[It] filed settled actions against three investment advisory firms and two dually-registered broker-dealer and advisory firms for violations that related to unsuitable sales of complex exchange-traded products to retail investors. The sales occurred between January 2016 and April 2020. These actions are the first arising from investigations generated by the Division of Enforcement's Exchange-Traded Products Initiative, which utilized trading data analytics to uncover potential unsuitable sales. The five actions filed today -- against American Portfolios Financial Services/American Portfolios Advisors Inc., Benjamin F. Edwards & Company Inc., Royal Alliance Associates Inc., Securities America Advisors Inc., and Summit Financial Group Inc. -- will result in the return of over $3 million to harmed investors. "

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Monetary Penalties:

Disgorgement

(Penalty was noted in document, but no amount was listed)

Civil Penalty

Individual:     $600,000.00 Shared:    

Pre-Judgment Interest

(Penalty was noted in document, but no amount was listed)

Related Documents:

IA-5626 13-Nov-2020 Administrative Proceeding
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
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."