Practice Management
SEC dings Cambridge $15m over rev sharing, advisor loanmaking disclosures
Tania Mitra / Mar 20, 2025
The regulatory body alleges that Cambridge Investment Research Advisors violated its fiduciary duty.
The Securities and Exchange Commission (SEC) has ordered brokerage and advisory giant Cambridge Investment Research Advisors (CIRA) to pay $15m in combined disgorgement, interest and penalties for allegedly breaching its fiduciary duty and not disclosing material conflicts of interest.
The Commission issued a final judgment against CIRA on Thursday after filing its initial complaint in March 2022. The complaint, filed in District Court for the Southern District of Iowa, alleged that CIRA continually ‘put its financial interests ahead of its clients,’ thereby breaching its fiduciary obligations. The regulatory body noted five ways in which CIRA did this.
First, the initial complaint alleged that CIRA invested client assets in mutual funds and money market sweep funds that generated ‘millions’ in revenue sharing income for brokerage affiliate Cambridge Investment Research Inc. (CIRI) from clearing brokers. The conflicts of interest here were not adequately disclosed to clients and CIRA did...
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