The U.S. Securities and Exchange Commission and Wunderlich Securities Inc. have reached a settlement on an SEC complaint that alleged the firm, among other things, overcharged clients on commissions and other fees.
Under the agreement, Wunderlich-an investment advisor and broker-dealer based in Memphis, Tenn.-will pay about $532,000 in penalties and be monitored by an independent compliance consultant for three years.
Also named in the complaint and party to the agreement were Gary Wunderlich Jr., the founder and CEO of the firm, who was fined $45,000, and Tracy Wiswall, who served as the firm's chief compliance officer at the time of the alleged violations. All three parties agreed to the settlement without admitting to or denying any of the findings, according to the SEC.
The complaint alleged that from about 2007 to 2009, Wunderlich overcharged its advisory clients by about $120,835 over the course of more than 6,000 transactions. The SEC concluded the overcharges were due to "back-office errors" and noted that the firm repaid the clients before the consent agreement was completed.
Wunderlich, with about $469 million under management, was also accused of failing to meet disclosure and client consent requirements when trading on behalf of clients, and failing to maintain written policies and procedures, and a code of ethics.