(Bloomberg) -- Deutsche Bank AG agreed to pay $500,000 to settle a U.S. regulator’s allegations that it made improper disclosures about how it selected hedge funds for wealth management clients.

In marketing materials, a Deutsche Bank unit disclosed that it relied on an in-house research group, the Securities and Exchange Commission said in a Thursday order. However, Deutsche Bank failed to reveal that it only evaluated hedge funds that agreed to share management fees with it, the SEC said.

To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net

To contact the editor responsible for this story: Jesse Westbrook at jwestbrook1@bloomberg.net

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