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Bank of America adds cash sweep accounts to risk factors in SEC filing

This summer, wealth management companies have been facing regulatory queries and hit with lawsuits from customers over paltry rates paid in cash sweep accounts.

Bank of America adds cash sweep accounts to risk factors in SEC filing
Photo: Dreamstime

Now, Bank of America is warning shareholders that it too could face potential legal or regulatory risks related to “the rates paid on uninvested cash in investment advisory accounts that is swept into interest-paying bank deposits,” according to the company’s most recent 10-Q filing with the Securities and Exchange Commission. 

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