Critical Details
- The $9 million settlement between Betterment and the U.S. Securities and Exchange Commission will be shared amongst about 25,000 of the robo-advisor’s consumers, with a median payout of about $100.
- Betterment’s alleged failures had been related to “tax-loss harvesting,” a procedure widespread between monetary planners whereby taxes on financial commitment profits are decreased or eradicated by offsetting them with losses from other investments.
- Impacted prospects will be notified of their compensation afterwards this year when the SEC approves a distribution approach, the company said.
