The Brokerage Firm Continues to Face Scrutiny From Multiple Regulatory Agencies
According to a recently released Annual Audited Report provided by Berthel Fisher & Co. Financial Services, Inc. (Berthel) to the U.S. Securities and Exchange Commission (SEC), the company acknowledges that they are being investigated by the SEC and may incur costs and penalties of up to $600,000.
The SEC is investigating whether Berthel “breached its fiduciary duties or other obligations by receiving SEC Rule 12b-1 fees from mutual funds and other fees in investment advisory accounts, including but not limited to revenue-sharing payments and “markups” on expenses from its clearing firm.”
The investigation is part of the Share Class Selection Disclosure Initiative launched by the SEC in February 2018. The initiative was designed to target investment advisers and brokerage firms that failed to disclose a conflict of interest regarding their recommendation of a mutual fund share class selection and 12b-1 fees they received when a lower-cost share class was available for the same fund.
According to publicly available information through the Financial Industry Regulatory Authority (FINRA), Berthel has been the subject of 25 regulatory events, including failure to supervise, failure to reasonably train registered representatives, and failure to report and record required information adequately.
Berthel Fisher has set aside $1,856,000 in reserves, of which $1,039,000 will be covered by insurance for legal costs and potential losses.
Contact Levin Law for a Free Consultation
Contact Levin Law to see if you qualify to bring a claim against Berthel Fisher & Co. for losses sustained as a result of Berthel Fisher’s wrongdoing negligence, contact Levin Law at (855) 862-2306 or via email at co*****@le********.com for a free consultation. Most cases are accepted on a contingency fee basis. This means that you are not responsible for attorneys’ fees unless we recover money on your behalf.
