Avantax controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Avantax settles SEC disclosure matter for $16.9 million
Settlement
The SEC reached an agreement with 1st Global Advisors, now known as Avantax Advisory Services, to pay a $16.9 million penalty over failures to disclose conflicts related to mutual-fund marketing fees. Avantax consented to the settlement without admitting or denying the SEC's findings.
Company response
Refund or compensation — Avantax
Avantax agreed to return to investors approximately $12.4 million of revenue 1st Global received prior to being acquired in 2019 resulting from 12b-1 fees, certain no-transaction fee mutual funds and money-market cash-sweep products as well as an additional $2.5 million of interest, according to a statement from the company.
Source excerpt
The Securities and Exchange Commission said on Monday it had reached an agreement with 1st Global Advisors Inc., now known as Avantax Advisory Services Inc., to pay a $16.9 million penalty over not revealing conflicts stemming from marketing fees paid by clients for mutual funds that charge what is commonly referred to in the industry as 12b-1 fees.
Avantax has consented to the settlement without admitting or denying the findings set forth in the SEC’s Order.