U.S. regulator sanctions robo-advisers Wealthfront, Hedgeable on false disclosures

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission said on Friday it had settled charges with automated investment management providers Wealthfront Advisers LLC and Hedgeable Inc to resolve allegations that the companies had made false disclosures to their customers.

In its first enforcement actions against so-called robo-advisers, the SEC fined Wealthfront $250,000 and Hedgeable $80,000, the regulator said. The companies did not admit or deny the SEC’s findings.

Reporting by Anna Irrera; Editing by James Dalgleish

Leave a Reply

Your email address will not be published. Required fields are marked *