Defendant Name:
Northwest Advisors, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Northwest Bancshares, Inc.
SIC Code:
6036
CUSIP:
66734010
Document Reference:
IA-5830
Document Details
Legal Case Name
In the Matter of Northwest Advisors, Inc.
Document Name
Order Instituting Administrative 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
24-Aug-2021
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On August 24, 2021, the SEC instituted settled administrative and cease-and-desist proceedings against Northwest Advisors, Inc. stating: "These proceedings arise out of breaches of fiduciary duty by NWA, a registered
investment adviser, in connection with its mutual fund share class selection practices and the excess
fees paid by NWA’s advisory clients in its wrap fee program, including fees charged pursuant to
Rule 12b-1 under the Investment Company Act of 1940"
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Undertakings: "notify affected clients and former clients (i.e., those former and current clients who, during the Relevant Period of inadequate disclosure purchased or held higher-cost mutual fund shares when a lower-cost share class of the same fund was available to the client) 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."
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Disgorgement Plan
Monetary Penalties:
Disgorgement
Individual:
$779,416.00
Shared:
Civil Penalty
Individual:
$245,000.00
Shared:
Pre-Judgment Interest
Individual:
$123,084.00
Shared:
