HSBC Securities (USA) will pay a $750,000 civil penalty to settle with the Securities and Exchange Commission for making misrepresentations to retail clients about the compensation of its dually registered investment adviser and broker representatives.
According to the SEC's order, HSBC Securities told clients that its representatives were compensated based solely on nonfinancial factors and not based on the advisory fees paid to HSBC Securities.
The firm actually considered several financial factors to determine its representatives’ bonus compensation, including the amount of advisory fees that clients paid to HSBC Securities each quarter, which gave the broker/advisers “a financial incentive to generate more advisory fees in their clients' accounts,” the SEC said in release.
New chief executive Rich Steinmeier replaced Dan Arnold on October 1.
The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.
Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.
New survey finds varied levels of loyalty to advisors by generation.
Busy day for results, key data give markets concerns.
A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.
Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.
