Securities Law News

More SEC Cases Over High Investor Fees Expected, Official Says (1)

June 25, 2019, 4:15 PMUpdated: June 25, 2019, 7:28 PM

The SEC likely will bring more enforcement actions against investment firms that pushed mutual funds with higher fees on clients who had cheaper options, a senior agency official said.

The Securities and Exchange Commission’s Share Class Selection Disclosure Initiative has been “phenomenally successful” since it launched in 2018, Steven Peikin, a co-director of the agency’s Enforcement Division, said June 25. Wells Fargo & Co., Raymond James Financial Inc., and Royal Bank of Canada units were among 79 investment advisers that returned more than $125 million in investor money in March as part of the initiative.

The agency didn’t seek fines,...

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