On August 29, 2025, the Securities and Exchange Commission (SEC) accepted Empower’s offer to settle the cease-and-desist proceedings. The SEC ordered that:
- Empower “cease and desist” for committing or causing any violations and any future violations of Section 206(2) of Section 206 of the Investment Advisers Act is the anti-fraud provision that prohibits investment advisers from engaging in deceptive practices and requires advisers to obtain client consent for certain transactions. Under section 206(2), prohibits advisers “to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client”
- Empower Financial Services cease and desist from committing or causing any violations and any future violations of Rule 15l-1(a)(1) promulgated under the Exchange Act. More specifically, Rule 15l-1(a)(1) mandates that broker-dealers act in the best interest of retail customers when making recommendations regarding securities transactions or investment strategies. This rule is a part of the Regulation Best Interest[1] which was passed on June 5, 2019.
- Empower Financial is censured.
- Empower Financial shall pay disgorgement, prejudgment interest, and civil monetary penalties totaling $5,989,969.94 as follows:
- Empower Advisory shall pay disgorgement of $4,063,569.80, prejudgment interest of $426,400.14, and a civil monetary penalty in the amount of $750,000, consistent with the provisions of this Subsection.
- Empower Financial Services shall pay a civil monetary penalty in the amount of $750,000, consistent with the provisions of this Subsection D.
[1] Regulation Best Interest (Reg BI): The SEC’s Rule for Broker-Dealers Congressional Research Service
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