The Securities and Exchange Commission (SEC) has cracked down on five registered investment advisers.
In the second wave of regulatory action in less than a year, the SEC fined five companies for violating marketing rules.
SEC fines investment advisor
All five companies put their hands up and agreed to settle the fines imposed by the government agency. The fines totaled $200,000, and the SEC also charged other charges.
The SEC's investigation and order found that “the Companies have implemented policies and procedures reasonably designed to ensure that hypothetical performance relates to the intended financial condition and investment objectives of each advertisement. “promoted hypothetical achievements to the general public on its website without adopting and implementing them.'' Audience required by marketing regulations. ”
The five companies indicted are:
- Geosphere LLC
- Bradesco Global Advisors, Inc.
- Creditcorp Capital Advisors LLC
- Insight Securities Co., Ltd.
- Monex Asset Management Co., Ltd.
Co-Head of the SEC Enforcement Division's Asset Management Division. Cory Schuster will comment on the fees and the importance of the rules in place to protect consumers. “Today's actions demonstrate our continued targeted efforts to ensure that investment advisers fully comply with their obligations under the Regulations,” he said. . They also serve as a reminder of the benefits for businesses that take corrective action before being contacted by Commission staff. ”
This is the second wave of marketing rule violations being investigated by the SEC. As the first wave became clear, nine advisory firms came under regulatory scrutiny in September 2023.
The order results state that “GeaSphere has agreed to pay a civil penalty of $100,000. Bradesco, Creditcorp, InSight, and Monex have agreed to pay civil penalties of between $20,000 and $30,000, which were not determined by Commission staff. “This reflects certain corrective actions taken by each of these companies prior to being contacted.”
GeaSphere was found to have misinterpreted the SEC's order and received the heaviest penalty. The company made false statements in its advertising and failed to deliver on its promises to consumers.
GeaSphere is also responsible for making false and misleading representations in its advertisements, promoting misleading model performance, failing to demonstrate the performance shown in its advertisements, and not agreeing with those who have indemnified the endorsement in writing. It also breached other regulatory requirements, including failing to enter into a contract with.
The order further finds that GeaSphere committed recordkeeping and compliance violations and made misleading statements about its performance to registered investment company customers, stating that “misleading statements must be submitted to the Commission. “It was included in the customer's prospectus.”
Image: Ideograms.
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