New York-based investment adviser deVere USA agreed to pay an $8-million civil penalty to resolve SEC allegations that it failed to disclose conflicts of interest to its retail clients. The settlement will establish a Fair Fund for distribution of the penalty to affected clients. The SEC also announced the filing of a litigated action against two deVere USA investment adviser representatives, one of whom was the CEO of the firm. According to the SEC, deVere USA failed to disclose agreements with overseas product and service providers that resulted in compensation being paid to its advisers and an overseas affiliate, resulting in an incentive for deVere USA to recommend a pension transfer and particular product or service providers that were obligated to make payments. The order also found that deVere USA made materially misleading statements concerning tax treatment and available investment options.
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