The charges come as investment advisors increasingly use ESG metrics to appeal to investors, according to SEC Enforcement Division Deputy Director Sanjay Wadhwa.

President Melanie Senter Lubin said the rule would offer state regulators additional means to take action against registrants that don't pay up.

SEC Enforcement Division Director Gurbir S. Grewal said the enforcement action indicated that 'AML obligations are sacrosanct' for registrants.

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 Fifth Circuit Court of Appeals agreed that Congress unconstitutionally delegated its power when it allowed the SEC to pick whether to pursue enforcement cases in federal courts or internally.

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.

The high percentage of blank responses in a section of Form ADV related to the SEC's new marketing rule could indicate that RIAs are still grappling with how to comply with the regulation, according to a new analysis from IndyFin.

Financial Services Institute CEO Dale Brown opposes the DOL decision, arguing the rule offers 'much-needed certainty' for advisors who opted to be independent contractors.

Alliance Global Investors will forfeit $463 million and pay $3.2 billion in restitution to victims of the fraud as well as a $2.3 billion penalty.