BB&T Settles SEC Charges Over Valley Forge Asset Mgmt's Retail Commissions
March 05 2019 - 3:40PM
Dow Jones News
By Patrick Thomas
BB&T Corp. has agreed to return more than $5 million to
retail investors and pay a $500,000 fine after U.S. regulators
claimed that a firm it acquired misled clients about the costs of
its advisory services.
The U.S. Securities and Exchange Commission alleged that Valley
Forge Asset Management misled customers and provided inadequate
disclosures about its brokerage services. Regulators say the firm
promised high-level service at a low cost, but didn't actually
provide any additional services in order to convince customers to
choose it over less expensive external options.
BB&T didn't admit or deny the findings as part of the
settlment, the SEC said Tuesday.
The SEC alleged Valley Forge charged commissions roughly 4.5
times more than what clients would have paid compared with other
brokerage options and the firm told clients they were getting a 70%
discount off of its supposed retail price.
A BB&T representative didn't immediately provide comment on
the matter.
Write to Patrick Thomas at patrick.thomas@wsj.com
(END) Dow Jones Newswires
March 05, 2019 15:25 ET (20:25 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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