financemagnates.com
The Securities and Exchange Commission (SEC) has charged VanEck Associates Corporation for concealing a social media influencer's role in the launch of its new exchange-traded fund (ETF).
In March 2021, Van Eck introduced the VanEck Social Sentiment ETF (NYSE:BUZZ), designed to track an index based on positive insights from social media and other data sources.
However, the SEC's investigation found that VanEck had failed to disclose crucial information regarding a prominent social media influencer's planned involvement and the fee structure tied to the ETF's launch.
Andrew Dean, the Co-Chief of the Enforcement Division’s Asset Management Unit, mentioned: "Van Eck Associates’ disclosure failures concerning this high-profile fund launch limited the board’s ability to consider the economic impact of the licensing arrangement and the involvement of a prominent social media influencer as it evaluated Van Eck Associates’ advisory contract for the fund."