April 19, 2023
(Compliance Week) - New York-based investment adviser Betterment agreed to pay $9 million to settle charges levied by the Securities and Exchange Commission (SEC) over material misstatements and omissions related to its automated tax loss harvesting (TLH) service.
The firm misstated or omitted material facts regarding the service, which scans clients’ accounts to reduce their tax burden, the SEC stated in its press release Tuesday.
Betterment also allegedly failed to provide clients with notice of changes to contracts, maintain required books and records, and adopt and implement written compliance policies and procedures to prevent violations of the Investment Advisers Act.
By Jeff Dale
April 19, 2023
