(Bloomberg) – Federal securities regulators sued robo-advisor SoFi Wealth for failing to disclose conflicts of interest when the money manager transferred assets from third-party exchange-traded fund clients to two new investment vehicles sponsored by its parent company.
The San Francisco-based fund manager transferred the assets of about 20,000 clients in April 2019 without informing them that the company preferred its ETFs over competitors and used the assets to help market and add liquidity to the new funds, according to a statement. issued Thursday by the US National Securities Market Commission. SoFi moved clients’ assets without due regard for the tax consequences for its clients, according to the SEC.
“We are pleased to have resolved this matter with the SEC,” a company spokesperson said in an emailed statement. “As a company, we consider complying with all applicable laws and regulations as our highest priority.”
SoFi Wealth, a unit of SoFi Technologies Inc., agreed to pay a $ 300,000 fine without admitting or denying the SEC’s findings.
(Updates with the comment of the company in the third paragraph).
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