Ally Subsidiary to Pay $500,000 to Settle Conflict of Interest Claims

Dow Jones03-24

By Katherine Hamilton

Ally Financial's subsidiary will pay $500,000 to settle allegations it failed to disclose a conflict of interest to its customers about its the robo-advisor accounts.

The Securities and Exchange Commission said Monday that Ally Invest started offering the cash-enhanced robo-advisor accounts in 2019. With the accounts, Ally Invest allocated 30% of the total portfolio in each client's account to cash, while the other 70% was invested in a mix of securities selected by the company.

Cash in the accounts was managed by a non-affiliated clearing broker, who deposited the money at various banks, including Ally Invest's affiliated bank, where the cash could be loaned out and accrue interest. The non-affiliated broker received interest earned on the cash deposits, and then paid Ally Invest's affiliated broker-dealer a rebate.

The SEC said Ally Invest did so to make up for revenue lost from not charging an advisory fee on the robo-advisor accounts. From 2019 to 2025, Ally Invest didn't adequately disclose that conflict of interest to its customer, the SEC said.

Ally Invest has been ordered to notify affected investors of the settlement terms and pay a civil penalty, which will go toward the U.S. Treasury's general fund.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

March 23, 2026 18:48 ET (22:48 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2621383130?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-03-24 06:48","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2621383130","market":"other","top_or_hot":-1,"title":"Ally Subsidiary to Pay $500,000 to Settle Conflict of Interest Claims","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n  By Katherine Hamilton \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  Ally Financial's subsidiary will pay $500,000 to settle allegations it failed to disclose a conflict of interest to its customers about its the robo-advisor accounts. \n</p>\n<p>\n  The Securities and Exchange Commission said Monday that Ally Invest started offering the cash-enhanced robo-advisor accounts in 2019. With the accounts, Ally Invest allocated 30% of the total portfolio in each client's account to cash, while the other 70% was invested in a mix of securities selected by the company. \n</p>\n<p>\n  Cash in the accounts was managed by a non-affiliated clearing broker, who deposited the money at various banks, including Ally Invest's affiliated bank, where the cash could be loaned out and accrue interest. The non-affiliated broker received interest earned on the cash deposits, and then paid Ally Invest's affiliated broker-dealer a rebate. \n</p>\n<p>\n  The SEC said Ally Invest did so to make up for revenue lost from not charging an advisory fee on the robo-advisor accounts. From 2019 to 2025, Ally Invest didn't adequately disclose that conflict of interest to its customer, the SEC said. \n</p>\n<p>\n  Ally Invest has been ordered to notify affected investors of the settlement terms and pay a civil penalty, which will go toward the U.S. Treasury's general fund. \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  Write to Katherine Hamilton at katherine.hamilton@wsj.com \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 23, 2026 18:48 ET (22:48 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ally Subsidiary to Pay $500,000 to Settle Conflict of Interest Claims</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlly Subsidiary to Pay $500,000 to Settle Conflict of Interest Claims\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-03-24 06:48</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n  By Katherine Hamilton \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  Ally Financial's subsidiary will pay $500,000 to settle allegations it failed to disclose a conflict of interest to its customers about its the robo-advisor accounts. \n</p>\n<p>\n  The Securities and Exchange Commission said Monday that Ally Invest started offering the cash-enhanced robo-advisor accounts in 2019. With the accounts, Ally Invest allocated 30% of the total portfolio in each client's account to cash, while the other 70% was invested in a mix of securities selected by the company. \n</p>\n<p>\n  Cash in the accounts was managed by a non-affiliated clearing broker, who deposited the money at various banks, including Ally Invest's affiliated bank, where the cash could be loaned out and accrue interest. The non-affiliated broker received interest earned on the cash deposits, and then paid Ally Invest's affiliated broker-dealer a rebate. \n</p>\n<p>\n  The SEC said Ally Invest did so to make up for revenue lost from not charging an advisory fee on the robo-advisor accounts. From 2019 to 2025, Ally Invest didn't adequately disclose that conflict of interest to its customer, the SEC said. \n</p>\n<p>\n  Ally Invest has been ordered to notify affected investors of the settlement terms and pay a civil penalty, which will go toward the U.S. Treasury's general fund. \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  Write to Katherine Hamilton at katherine.hamilton@wsj.com \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 23, 2026 18:48 ET (22:48 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1791807156.HKD","symbol_name":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2621383130","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2621383130","pubTimestamp":1774306080,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Ally Financial's subsidiary will pay $500,000 to settle allegations it failed to disclose a conflict of interest to its customers about its the robo-advisor accounts.The Securities and Exchange Commission said Monday that Ally Invest started offering the cash-enhanced robo-advisor accounts in 2019. With the accounts, Ally Invest allocated 30% of the total portfolio in each client's account to cash, while the other 70% was invested in a mix of securities selected by the company.Cash in the accounts was managed by a non-affiliated clearing broker, who deposited the money at various banks, including Ally Invest's affiliated bank, where the cash could be loaned out and accrue interest. The non-affiliated broker received interest earned on the cash deposits, and then paid Ally Invest's affiliated broker-dealer a rebate.The SEC said Ally Invest did so to make up for revenue lost from not charging an advisory fee on the robo-advisor accounts. From 2019 to 2025, Ally Invest didn't adequately d","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","BK4166":"消费信贷","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","ALLY":"Ally Financial Inc.","BK4588":"碎股","LU0106831901.USD":"贝莱德世界金融基金A2","BK4585":"ETF&股票定投概念","BK4561":"索罗斯持仓","BK4559":"巴菲特持仓","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD"},"translate_title":"Ally子公司将支付50万美元以解决利益冲突索赔","themeId":"8603dabb40994e59ac78c04c930c0d49","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALLY":1.5},"content_text":"By Katherine Hamilton \n\n\n \n\n\n  Ally Financial's subsidiary will pay $500,000 to settle allegations it failed to disclose a conflict of interest to its customers about its the robo-advisor accounts. \n\n\n  The Securities and Exchange Commission said Monday that Ally Invest started offering the cash-enhanced robo-advisor accounts in 2019. With the accounts, Ally Invest allocated 30% of the total portfolio in each client's account to cash, while the other 70% was invested in a mix of securities selected by the company. \n\n\n  Cash in the accounts was managed by a non-affiliated clearing broker, who deposited the money at various banks, including Ally Invest's affiliated bank, where the cash could be loaned out and accrue interest. The non-affiliated broker received interest earned on the cash deposits, and then paid Ally Invest's affiliated broker-dealer a rebate. \n\n\n  The SEC said Ally Invest did so to make up for revenue lost from not charging an advisory fee on the robo-advisor accounts. From 2019 to 2025, Ally Invest didn't adequately disclose that conflict of interest to its customer, the SEC said. \n\n\n  Ally Invest has been ordered to notify affected investors of the settlement terms and pay a civil penalty, which will go toward the U.S. Treasury's general fund. \n\n\n \n\n\n  Write to Katherine Hamilton at katherine.hamilton@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  March 23, 2026 18:48 ET (22:48 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.38.0","shortVersion":"4.38.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2621383130","isCrawlerRequest":true}