The Share Class Selection Disclosure Initiative (SCSD Initiative), “reflects our effort to allocate our resources in a way that effectively targets the continued failure by some advisors to disclose conflicts of interest around share class selection and, importantly, is intended to facilitate the prompt return of money to victimized investors,” said Stephanie Avakian, co-director of the SEC’s Enforcement Division.
The SEC said Monday that the initiative was designed to protect investment advisors from financial penalties and fines if they self-report certain mutual fund share-class violations and return the money to harmed investors.
“These terms will not be available to advisors who do not self-report under this initiative, and we will continue to proactively seek to identify and pursue investment advisors that fail to make the necessary disclosures,” added Steven Peikin, the SEC’s, co-director of Enforcement.