BB&T Settles SEC Charges Over Valley Forge Asset Mgmt's Retail Commissions

   By Patrick Thomas 
 

BB&T Corp. has agreed to return more than $5 million to retail investors and pay a $500,000 fine after U.S. regulators claimed that a firm it acquired misled clients about the costs of its advisory services.

The U.S. Securities and Exchange Commission alleged that Valley Forge Asset Management misled customers and provided inadequate disclosures about its brokerage services. Regulators say the firm promised high-level service at a low cost, but didn't actually provide any additional services in order to convince customers to choose it over less expensive external options.

BB&T didn't admit or deny the findings as part of the settlment, the SEC said Tuesday.

The SEC alleged Valley Forge charged commissions roughly 4.5 times more than what clients would have paid compared with other brokerage options and the firm told clients they were getting a 70% discount off of its supposed retail price.

A BB&T representative didn't immediately provide comment on the matter.

Write to Patrick Thomas at [e-mail]

(END) Dow Jones Newswires

March 05, 2019 15:25 ET (20:25 GMT)

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