SEC Fines Five Investment Advisory Firms for Marketing Rule Violations

Posted on May 24th, 2024 at 2:16 PM
SEC Fines Five Investment Advisory Firms for Marketing Rule Violations

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (SEC) has taken action against five registered investment advisory (RIA) firms for breaching its updated marketing rule, resulting in a combined penalty of $200,000, as disclosed in a recent announcement.

According to AdvisorHub, the five RIAs implicated are GeaSphere LLC, Bradesco Global Advisors Inc., Credicorp Capital Advisors LLC, InSight Securities Inc., and Monex Asset Management Inc.

The firms advertised hypothetical performance figures on their websites without ensuring that such data aligned with their clients' or prospects' financial situations and investment objectives, thereby violating the Investment Advisers Act of 1940, as per the SEC. All five firms agreed to the censure, monetary penalties, and a cease and desist order without admitting or denying the SEC's findings.

This enforcement action comes after a series of SEC warnings and compliance deadlines regarding the marketing rule, indicating the regulator's heightened scrutiny.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

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