DeVere USA Inc. has agreed to pay a civil money penalty of $8 million related to its failure to disclose conflicts of interest to its retail clients in a settlement with the SEC.
According to the SEC's order, deVere USA failed to disclose agreements with overseas product and service providers that resulted in compensation being paid to deVere USA's advisers and an overseas affiliate.
The order also found that the undisclosed compensation created an incentive for deVere USA to recommend a pension transfer and particular product or service providers that were obligated to make payments. In addition, deVere USA made materially misleading statements concerning tax treatment and available investment options, according to the order.
In addition, the SEC filed charges in Manhattan federal district court against deVere USA's ex-CEO, Benjamin Alderson, and former manager Bradley Hamilton. The SEC alleged that Alderson and Hamilton misled clients and prospective clients about the benefits of pension transfers while hiding material conflicts of interest, including the substantial compensation that both personally stood to receive.
The company consented to the SEC's order without admitting or denying the regulator's findings.
