The US Securities and Exchange Commission (SEC) is fining a brokerage firm for receiving undisclosed payments it received to steer business in a particular direction.
Robare Group charged for recommending certain types of investments
No, the case is not related to high frequency trading, where such “payment for order flow” between brokerage firms and various HFT trading venues had existed undisclosed to investors. This case involves Robare Group, a small Houston-based investment advisor who steered business to a mutual fund that was providing a rebate to the brokerage for every dollar invested.
"Payments to investment advisers for recommending certain types of investments may taint their ability to provide impartial advice to their clients,” said Marshall S. Sprung, co-chief of the SEC Enforcement...
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