麻花传媒

SEC Fines New Jersey Brokerage and RIA Firms $240,000 for Impending Client Reporting

Posted on November 21st, 2024 at 1:17 PM
SEC Fines New Jersey Brokerage and RIA Firms $240,000 for Impending Client Reporting

From the desk of Jim Eccleston at 麻花传媒

The Securities and Exchange Commission (SEC) has fined Nationwide Planning Associates, a New Jersey-based independent brokerage, and two affiliated registered investment advisory firms, NPA Asset Management and Blue Point Strategic Wealth, $240,000. According to AdvisorHub, the SEC had alleged that the firms used non-disclosure agreements (NDAs) to prevent clients from reporting securities law violations.

Between May 2021 and February 2024, the firms required 11 clients to sign confidentiality agreements as part of settlements related to losses from alleged securities law breaches. Some agreements prohibited clients from reporting disputes to the SEC or other securities regulators, which the SEC stated violated federal laws.

Nationwide Planning Associates agreed to pay $160,000, while its affiliated RIAs, NPA Asset Management, and Blue Point Strategic Wealth, will pay $70,000 and $10,000, respectively.

In addition to the fines, the firms agreed to cease using the problematic non-disclosure clauses and were censured by the SEC.

AdvisorHub reports that, although the firms included a clause allowing clients to respond to unsolicited inquiries from regulators, the SEC deemed it insufficient. Once notified of the violations, the firms ceased using the NDAs and communicated with affected clients to release them from the agreements, which the SEC considered when determining penalties.

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

November 4, 2025
FINRA Suspends Former Morgan Stanley Advisor Over $180,000 in Improper Transfers

The Financial Industry Regulatory Authority (FINRA) suspended former Morgan Stanley advisor C.J. Kline for two years and imposed a $5,000 fine for allegedly executing more than $180,000 in improper fund transfers between his personal and brokerage accounts.

November 3, 2025
Former Florida Broker Pleads Guilty in $2.7 Million Investment Fraud and PPP Loan Scheme

Former Florida broker Jared Dean Eakes, 34, of Jacksonville, has pleaded guilty to wire and bank fraud in connection with a $2.7 million investment scam and a separate scheme involving over $4.75 million in fraudulent Paycheck Protection Program (PPP) loans, according to U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.

October 31, 2025
Department of Labor Sued Over Illegitimate Deferred Compensation Opinion Letter

Three former Morgan Stanley advisors filed suit this week against the U.S. Department of Labor (DOL), claiming the agency exceeded its authority and was unduly influenced when it issued an advisory opinion that sought to undermine their deferred compensation claims.