Betterment LLG, an asset management, and robo-adviser firm has accepted the $9 million penalty U.S. Securities and Exchange Commission had issued for misstating facts, poor record-keeping, and disclosure practices from 2016 and 2019. The SEC noted that over 25000 accounts were affected by the malpractices leading to the loss of $4 million in potential tax benefits.
In response to the SEC's contention, the company made significant investments to its compliance program since 2019 and stated their mission is to continue to promote betterment of their clients' economic wellbeing.
The company recently offered more appealing high-yield cash accounts to their clients by doubling the FDIC insurance, allowing individual holders access up to 2 million FDIC insurance, 4 million for a joint account, and 8 million for a couple with individual and joint accounts.
The CEO, Sarah Kirshbaum Levy, confirmed these changes and stated the company has benefited from the transfer of funds from smaller banks to larger banks and an influx in money market funds.
The firm is dedicated to helping their clients by bettering and increasing their trust and offering superior fund security. Betterment is now working with 12 banks to achieve this goal.
Joseph Ruiz
- 2023-04-19
Betterment Inc. Accepts Penalty from U.S. SEC
Betterment Inc., an asset management and robo-adviser firm, has accepted a penalty of $9 million from U.S. Securities and Exchange Commission for misstating facts, poor record-keeping, and disclosure practices from 2016 to 2019. The company has invested significantly into a compliance program and is now partnering with 12 banks to better help clients.
