SEC Suit Against Cetera May Resonate Loudly, Adviser Group Says

The Securities and Exchange Commission is improperly trying to impose a new disclosure requirement on investment advisers through an enforcement lawsuit rather than a regulation, a financial services trade association says in a new federal court filing in Colorado.

If the SEC succeeds in its suit against Cetera Advisors LLC, “there will be widespread ramifications to the financial services industry,” the Financial Services Institute said in a proposed amicus brief to the U.S. District Court for the District of Colorado July 24. Costs would rise and the case would set a dangerous precedent, the group said.

The SEC alleges Cetera ...