The U.S. Securities and Exchange Commission is cracking down on free lunches. Specifically, it will target firms sponsoring seminars with free meals that attract elder clients to high-fee investment products, according to Joshua Horn of Fox Rothschild in this recent post. This effort is in line with both the SEC and the Financial Industry Regulatory Authority’s efforts to focus on senior citizens and the abuses that are prevalent within this segment of society, says Horn.
“The unfortunate reality is that the SEC has found that these lunches are being used to market to the elderly or to gain information about potential clients to then market them further through one-on-one contact,” says Horn. He notes the SEC is also scrutinizing senior designations that some financial advisers give to their older clientele.
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