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Cetera Reaped $10 Million Via Undisclosed Conflicts, SEC Says

Aug. 29, 2019, 9:05 PM

Investment adviser Cetera Advisors LLC put its own interests ahead of its clients’ to the tune of $10 million, the Securities and Exchange Commission says in a new suit filed in a federal court in Colorado.

“Cetera continuously recommended and invested client assets in investments that cost clients more when less expensive, identical investments were available,” the SEC says in the Aug. 29 filing in the U.S. District Court for the District of Colorado.

The company breached its fiduciary duties to its clients in a number of ways, the suit says. It recommended higher-cost share classes within the same investment ...