SEC Charges Zoe Financial for Conflict of Interest

The Securities and Exchange Commission today announced settled charges against New York-based investment adviser Zoe Financial Inc.

The Securities and Exchange Commission today announced settled charges against New York-based investment adviser Zoe Financial Inc. for failing to fully and fairly disclose material facts concerning conflicts of interest to its clients and prospective clients.

The order finds that Zoe Financial had a financial incentive for advisers in its network to use Zoe Wealth and encouraged advisers to do so. Further, as described in the order, while Zoe Financial’s algorithm did not consider whether an adviser used Zoe Wealth when it generated recommendations, salespeople often became involved in the referral process, and on many occasions suggested advisers tha…