Defendant Name:
Voya Financial Advisors, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Voya Financial, Inc.
SIC Code:
6311
CUSIP:
92908910
Document Reference:
34-90745
Document Details
Legal Case Name
In the Matter of Voya Financial Advisors, Inc.
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and 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
21-Dec-2020
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On December 21, 2020, the SEC instituted settled cease-and-desist proceedings against Voya Financial Advisors, Inc., stating: "These proceedings arise from Voya’s breach of its fiduciary duties to its advisory
clients in connection with: (a) Voya’s mutual fund share class selection practices and the financial
benefits it received for advising clients to purchase and hold mutual fund share classes that paid fees
pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”); (b) Voya’s
receipt of compensation in connection with certain client cash sweep accounts; and (c) Voya’s
policy of requiring advisory clients to pay an upfront brokerage commission when purchasing
illiquid alternative investment products (“Illiquid Alts”) when the same investment was available to
advisory clients with the brokerage commissions waived."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Compliance Related Independent Consultant
Other Undertakings: "Within 30 days of the entry of this Order, Voya shall notify affected investors (i.e., those former and current clients who were financially harmed during each relevant period by the practices discussed above (hereinafter, “affected investors”)) of the settlement terms of this Order by sending a copy of this Order to each affected investor via mail, email, or such other method not unacceptable to the Commission staff, together with a cover letter in a form not unacceptable to the Commission staff."
Fair Funds
Monetary Penalties:
Disgorgement
Individual:
$11,547,820.00
Shared:
Civil Penalty
Individual:
$9,000,000.00
Shared:
Pre-Judgment Interest
Individual:
$2,371,335.00
Shared:
