This fine of $250,000 to Wealthfront means that their violations were 100% worth it. Their fund is 11 billion+ and they got an advantage over competitors by posting testimonials. SEC rules are very clear on this point and at the time other robo compliance officers were lamenting, “I don’t understand how they are able to do that legally.”
Well, guess what? They weren’t, but they took it as a calculated risk and the SEC announced they made the right choice when this fine was announced years later.
Well, guess what? They weren’t, but they took it as a calculated risk and the SEC announced they made the right choice when this fine was announced years later.