Defendant Name:
Waddell & Reed, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
LPL Financial Holdings Inc.
SIC Code:
9999
CUSIP:
50212V10
Document Reference:
34-95828
Document Details
Legal Case Name
In the Matter of Waddel & Reed, LLC
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
19-Sep-2022
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
The Commission stated: "These proceedings arise out of breaches of fiduciary duty and compliance failures by Waddell & Reed, Inc. ("Waddell"), a former registered investment adviser and broker-dealer. Specifically, Waddell failed to take reasonable steps with respect to certain clients in its wrap fee investment advisory program known as MAPLatitude after their accounts were flagged in Waddell's systems for potential "reverse churning.""
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Distribution Fund
Monetary Penalties:
Disgorgement
Individual:
$484,645.00
Shared:
Civil Penalty
Individual:
$200,000.00
Shared:
Pre-Judgment Interest
Individual:
$90,944.00
Shared:
