Brokerages Warned by SEC Over Conflicts of Interest Tied to Pay
- Disclosures not enough to satisfy conduct rules, agency says
- SEC staff say sales quotas and incentives may pose conflicts
The US Securities and Exchange Commission headquarters in Washington, D.C.
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Brokerages and money managers are being warned that they need to do more than just disclose conflicts of interest associated with employee pay programs to avoid trouble with the US Securities and Exchange Commission.
SEC staff issued a new bulletin on Wednesday telling firms not to take a “check-the-box” approach to complying with conduct rules. The agency said that brokers must identify, disclose and in some cases eliminate conflicts of interest.