US: Wahed Invest has settled charges with the US Securities and Exchange Commission (SEC) relating to the use of professional athletes’ endorsements in its advertising without including the disclosures necessary to comply with the SEC’s Marketing Rule, stating that these were paid endorsements from people who were not current clients of the firm.
The SEC order also found that hypothetical returns were included in advertising for more than 17 months. Wahed consented to a cease-and-desist order, a censure, not to advertise hypothetical performance without having the requisite policies and procedures and to ensure its advertisements comply with the Marketing Rule, along with a civil penalty of US$250,000.
