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
File Number 3-20183
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
The Commission ordered that: "Respondent’s payment of the Fair Fund shall be made by depositing the full amount of the disgorgement, prejudgment interest, and civil penalty into an escrow account . . . Respondent shall be responsible for administering the Fair Fund". Other Specified Undertakings
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:    

Related Documents:

34-90745-s 21-Dec-2020 Administrative Summary
Advisory Firm Settles Fraud Charges, Agrees to Repay Harmed Clients
The SEC " announced that Voya Financial Advisors, Inc. (Voya) has agreed to settle charges for its disclosure failures and misleading statements to clients regarding investment advice it gave about mutual funds, illiquid alternative investments and cash sweep vehicles. The settlement includes a distribution of money to harmed clients of the retail advisory firm and Voya's retention of an independent compliance consultant. "