The SEC claims the RIA violated its fiduciary duty when it did not inform clients about the conflicts related to revenue-sharing agreements and must return funds to affected investors.
The call for greater independence became the motivation for Steve Dimitriou to leave FiNet in 2020 and launch his own RIA firm, Mayflower Advisors, which today manages over $1.7B.
The SEC chair told the House Appropriations Committee he would use the additional funds to keep pace with growing number of RIAs, scrutinize broker/dealers' Reg BI compliance, and get back to in-person examinations.