September 03, 2021

Jim Lundy Comments on the Latest SEC 12b-1 Cases With ThinkAdvisor

In “9 Firms Hit by SEC Over 12b-1 Fees,” SEC and regulatory enforcement defense partner Jim Lundy spoke to ThinkAdvisor about cases the Securities and Exchange Commission (SEC) continues to bring against advisers for 12b-1 fee violations since ending its Share Class Selection Disclosure Initiative in April 2020.

The publication explained that under the initiative, which the securities regulator launched in February 2018, the Division of Enforcement instituted a self-reporting program to protect advisory clients from undisclosed conflicts of interest related to 12b-1 fees and return money to investors.

Lundy, a former attorney at the SEC, said that some of the 12b-1 cases we see now are “follow-ons to firms that have been under investigation for a year or two.”

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