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Investment Adviser Charged with Improper Trading in Fixed Income Securities

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The SEC has charged an investment adviser for improper trading in fixed income securities.

description: a person in a suit looking at a computer screen with a concerned expression.

In a recent announcement, the Securities and Exchange Commission (SEC) charged an investment adviser in connection with improper trading in certain fixed income securities. The SEC alleges that the adviser engaged in a practice known as "flipping," which involves buying and quickly selling bonds to generate profits for the adviser at the expense of the client.

According to the SEC, the investment adviser purchased bonds for clients and then sold them back to the same broker-dealer within days or weeks, sometimes at a markup. The SEC alleges that the adviser failed to disclose to clients that the bonds were being flipped, and that the adviser's actions resulted in higher costs and lower returns for clients.

The investment adviser has not yet responded to the charges, and it remains to be seen how the case will unfold. However, the SEC has been cracking down on similar practices in recent years, and investors are advised to be vigilant when working with financial professionals.

This news highlights the importance of working with a reputable investment adviser who puts the interests of the client first. Investors should do their due diligence when selecting an adviser, and should look for someone who has a track record of success and a commitment to transparency.

In related news, Scott Fries was recently sentenced to three years in prison and ordered to pay nearly $420,000 after convictions for theft, engaging in a pattern of corrupt activity, and securities fraud. Fries was a financial adviser who defrauded clients by stealing their money and using it for personal expenses.

This case is a reminder that investors should always be cautious when working with financial professionals, and should report any suspicious activity to the appropriate authorities.

For investors who prefer a more hands-off approach to investing, robo-advisors can be a good option. The best robo-advisors charge low portfolio management fees and offer a range of services, including tax optimization. However, investors should still do their due diligence when selecting a robo-advisor, and should look for one that has a solid track record and a commitment to transparency.

Looking back, the financial crisis of 2008-2009 was a wake-up call for many investors. The banking system was on the brink of collapse, to such an extent that the Fed first embarked on quantitative easing. This period highlighted the importance of having a diversified portfolio and working with a financial professional who can help navigate turbulent markets.

In other news, Altruist, the modern custodian built exclusively for RIAs, recently announced a new $112 million series D round of funding led by Insight. This funding will help Altruist expand its platform and reach a wider audience of financial professionals and investors.

Bank of Singapore has also made news recently by hiring Chris Tang, a former Standard Chartered banker, as a senior investment adviser to help it better serve its clients. Tang brings a wealth of experience to the role and is expected to help Bank of Singapore continue to grow its business.

Unfortunately, not all financial professionals operate with the best interests of their clients in mind. UC employees and retirees have recently reported unauthorized and misleading financial adviser solicitations, highlighting the importance of being vigilant when working with financial professionals.

If you have an issue with your financial adviser or are looking for a new one, you can email for assistance. MarketWatch can help connect you with a reputable financial professional who can help you achieve your financial goals.

In conclusion, investors should always be vigilant when working with financial professionals and should do their due diligence when selecting an adviser or robo-advisor. The recent news highlights the importance of transparency, diversification, and putting the interests of the client first.

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