The Securities and Exchange Commission says TD Ameritrade failed to properly supervise representatives who misled investors about the safety of the mutual fund that “broke the buck” in 2008, The Associated Press reports.
The SEC said Thursday that the online brokerage TD Ameritrade has agreed to pay customers who still hold shares of Reserve Management Corp.’s Yield Plus Fund about $10 million as part of a settlement.
The SEC says Ameritrade representatives failed to disclose the risks of the Yield Plus Fund and some representatives told investors the fund was as safe as cash.
The Yield Plus Fund “broke the buck” in September 2008 when the value of its assets fell below the level needed to cover every dollar invested in the fund.
TD Ameritrade did not admit wrongdoing in the settlement.
