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September 01, 2021 at 03:01 PM
What You Need to Know
- The SEC ordered Cantella & Co. to pay disgorgement of $536,953 over cash sweep conflicts of interest.
- The firm was also ordered to pay prejudgment interest of $64,677 and a civil monetary penalty in the amount of $100,000.
- Cantella provided no disclosure of the conflict of interest arising from the firm’s receipt of revenue-sharing payments.
The Securities and Exchange Commission has ordered a Malden, Massachusetts-based dually registered investment advisor firm and broker-dealer to pay a total of $701,630 over how it invested clients’ cash.
In an order filed on Monday, the SEC alleged that, since at least 2016, Cantella & Co. put clients’ cash into cash sweep products from which it collected revenue-sharing payments.
In anticipation of the institution of the order, the firm submitted a settlement offer that the SEC decided to accept, the commission said.
The $701,630 that the firm was ordered to pay includes disgorgement of $536,953, prejudgment interest of $64,677 and a civil monetary penalty in the amount of $100,000, the SEC said. The firm was also censured and ordered to cease and desist from committing or causing any violations and future violations of the Advisers Act.
