Commonwealth Financial Allegedly Hid Conflicts of Interest

Commonwealth Equity Services LLC didn’t disclose conflicts of interest involving revenue-generating investment choices to clients, the SEC said Aug. 1.

The Massachusetts-based investment adviser and broker should have told clients that it had a financial incentive to encourage them to invest in more expensive mutual funds thanks to a revenue-sharing agreement with its clearing broker, according to the Securities and Exchange Commission complaint filed in the U.S. District Court for the District of Massachusetts.

Commonwealth “vehemently denies the allegations and believes they are categorically without merit,” a company spokesperson said. “We are confident we have operated both appropriately and justly ...