Snowden Capital Advisors LLC agreed to pay $364,590.30 and was censured to resolve SEC findings that it failed to fully disclose conflicts of interest tied to compensation its affiliated broker-dealer received, according to an order the SEC released Oct. 30.
\nAccording to the order, from at least February 1, 2018 through March 31, 2023, the registered investment adviser \"breached its fiduciary duty to its retail advisory clients by failing to fully and fairly disclose the actual and potential conflicts of interest\" arising from payments its affiliate, Snowden Account Services LLC, received from a firm the order calls Clearing Firm A.
\nThe SEC says Snowden Account Services marked up the interest rate on clients' margin balances above the base rate charged by Clearing Firm A and kept the additional interest as compensation. The order also says that from February 1, 2018 to June 30, 2020, the affiliate received payments based on Snowden Capital's advisory clients' balances in certain cash sweep money market funds.
\nThe SEC also found that Snowden Capital's retail advisory agreements contained a liability disclaimer, known as a hedge clause, with misleading statements about the scope of its fiduciary duty, and that the firm failed to implement its written policies on the clause.
\nThe order requires Snowden Capital to pay disgorgement of $226,316.99, prejudgment interest of $38,273.31 and a civil penalty of $100,000 into a Fair Fund for distribution to affected clients. Snowden Capital must also cease and desist from further violations.
\nSnowden Capital consented to the order without admitting the findings, except as to the SEC's jurisdiction, according to the order.
", "text": "Snowden Capital Advisors LLC agreed to pay $364,590.30 and was censured to resolve SEC findings that it failed to fully disclose conflicts of interest tied to compensation its affiliated broker-dealer received, according to an order the SEC released Oct. 30.\n\nAccording to the order, from at least February 1, 2018 through March 31, 2023, the registered investment adviser \"breached its fiduciary duty to its retail advisory clients by failing to fully and fairly disclose the actual and potential conflicts of interest\" arising from payments its affiliate, Snowden Account Services LLC, received from a firm the order calls Clearing Firm A.\n\nThe SEC says Snowden Account Services marked up the interest rate on clients' margin balances above the base rate charged by Clearing Firm A and kept the additional interest as compensation. The order also says that from February 1, 2018 to June 30, 2020, the affiliate received payments based on Snowden Capital's advisory clients' balances in certain cash sweep money market funds.\n\nThe SEC also found that Snowden Capital's retail advisory agreements contained a liability disclaimer, known as a hedge clause, with misleading statements about the scope of its fiduciary duty, and that the firm failed to implement its written policies on the clause.\n\nThe order requires Snowden Capital to pay disgorgement of $226,316.99, prejudgment interest of $38,273.31 and a civil penalty of $100,000 into a Fair Fund for distribution to affected clients. Snowden Capital must also cease and desist from further violations.\n\nSnowden Capital consented to the order without admitting the findings, except as to the SEC's jurisdiction, according to the order." }, "claims": [ { "evidence": "Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting the findings herein, except as to the Commission's jurisdiction over it and the subject matter of these proceedings, which are admitted, Respondent consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (\"Order\"), as set forth below.", "kind": "settles", "receipt": "IA-7031" } ], "contact": "research@alphanume.com", "corrections": [], "dek": "The order says the adviser's affiliated broker-dealer marked up margin interest and took cash sweep payments, and puts the money in a fund for affected clients.", "desk": "regulatory", "desk_label": "Regulatory Actions", "entities": [ { "basis": "identifier or the record itself", "in_headline": true, "name": "Snowden Capital Advisors LLC", "role": "respondent" } ], "facts": [ { "key": "respondent", "receipt": "IA-7031", "source": { "path": "text", "value": "Snowden Capital Advisors LLC" }, "text": "Snowden Capital Advisors LLC" }, { "key": "descriptor", "receipt": "IA-7031", "source": { "path": "text", "value": "registered investment adviser" }, "text": "registered investment adviser" }, { "key": "conduct_phrase", "receipt": "IA-7031", "source": { "path": "text", "value": "Undisclosed Conflicts of Interest" }, "text": "Undisclosed Conflicts of Interest" }, { "key": "release_date__short", "receipt": "IA-7031", "source": { "path": "index:date", "value": "2026-10-30" }, "text": "Oct. 30" }, { "key": "num_4", "receipt": "IA-7031", "source": { "path": "text", "value": "February 1, 2018 to June 30, 2020" }, "text": "February 1, 2018 to June 30, 2020" } ], "guid": "tag:alphanume.com,2026:news:s_foxk75fqlcoq", "headline": "Snowden Capital Advisors LLC Settles SEC Charges Over Alleged Undisclosed Conflicts of Interest", "id": "s_foxk75fqlcoq", "kind": "story", "legal": { "allegation": true, "stage": "settled_no_admit" }, "published_at": "2026-10-30T14:32:42+00:00", "receipts": [ { "filed": "2026-10-30", "form": "sec-ap", "id": "IA-7031", "label": "SEC administrative proceeding IA-7031", "source": "sec_release", "type": "sec_release_no", "type_label": "SEC release", "url": "https://www.sec.gov/files/litigation/admin/2026/ia-7031.pdf" } ], "record_date": "2026-10-30", "schema": "alphanume.news/item/v1", "slug": "snowden-capital-advisors-llc-settles-sec-charges-over-alleged-undisclosed", "status": "published", "type": "sec_admin", "updated_at": "2026-10-30T14:32:42+00:00", "version": 1, "url": "https://news.alphanume.com/stories/snowden-capital-advisors-llc-settles-sec-charges-over-alleged-undisclosed", "api_url": "https://news.alphanume.com/api/v1/stories/s_foxk75fqlcoq" }