SEC fines Zoe Financial $450,000 over adviser referral disclosures

The Securities and Exchange Commission announced a settled order requiring investment adviser Zoe Financial to pay a $450,000 civil penalty over disclosures of conflicts in its adviser referral service. Zoe's algorithm matched prospective clients with advisers, but salespeople often suggested additional advisers after the initial matches, the SEC said. The agency found that Zoe had a financial incentive for advisers to use its Zoe Wealth support service and did not adequately disclose the resulting conflict until December 2024. The SEC said the algorithm itself did not consider whether an adviser used Zoe Wealth. Zoe agreed to a cease-and-desist order and censure without admitting the SEC's findings.