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Topic: Wrap Fee Programs

SEC Crackdown on Wrap Fee Programs Nets Two More Advisers

September 15, 2016
The SEC isnít slowing down in its enforcement campaign against dually registered advisers/broker-dealers offering wrap fee programs when those advisers charge fees in addition to the annual wrap fee. This is particularly true when the additional fees are generated by subadvisers who "trade away" transactions to non-affiliated broker-dealers.

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Wrap Fee Programs: Best Execution No Defense if ‘Trade Aways’ Not Disclosed

August 12, 2016
Best execution, best execution, best execution. Those two words are pounded into the minds of advisers and their trading desks so that clients receive the best deals possible. But they apparently made little difference to the SEC, which settled with a wrap fee program subadviser for failing to adequately disclose the frequency of trades it sent to non-affiliated brokers Ė even though the subadviser said those trades resulted in lower execution costs.

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