Robo Advisor Account Conflicts & Disclosures (03/23/26)

The SEC charged Ally Invest Advisors Inc. with breach of fiduciary duty for failing to fully and fairly disclose (1) material facts concerning its selection of a thirty percent cash allocation for its no advisory fee Cash-Enhanced “robo-advisor” accounts, including the resulting conflict of interest; and (2) Ally Invest’s application of its stated investment methodology in such accounts.