On July 9, 2020, BNB Wealth Management, LLC settled a SEC administrative proceeding in connection with its mutual fund share class selection practices. BNB purchased, recommended, or held for certain advisory clients mutual fund share classes that charged fees pursuant to Rule 12b-1 instead of lower-cost share classes of the same funds that were available to the clients. BNB’s investment adviser representatives (“IARs”), in their capacities as registered representatives of an unaffiliated broker-dealer, received 12b-1 fee revenue in connection with these investments, but BNB did not adequately disclose this conflict of interest in its Forms ADV or otherwise. BNB also breached its duty to seek best execution for certain transactions by causing certain advisory clients to invest in fund share classes that charged 12b-1 fees when share classes of the same funds that presented a more favorable value for these clients under the particular circumstances in place at the time of the transactions were available to the clients. Furthermore, BNB failed to adopt and implement written compliance policies and procedures reasonably designed to prevent violations of the Advisers Act and the rules thereunder in connection with its mutual fund share class selection practices. BNB did not self-report to the Commission pursuant to the Division of Enforcement’s (the “Division”) Share Class Selection Disclosure Initiative (“SCSD Initiative”). [https://www.sec.gov/litigation/admin/2020/ia-5535.pdf]