SEC fines 9 Investment Firms Over Marketing Rule Failures

The SEC said the advisory firms violated rules that limit the touting of hypothetical performance to investors.

|

The U.S. Securities and Exchange Commission has ordered nine investment advisory firms to pay a combined $850,000 in civil penalties for advertising hypothetical performance without implementing new policies required by regulators.

The SEC announced Sept. 11 that it found the firms had not met the requirements of a 2020 rule that bans advisors from touting hypothetical performance to investors unless they have policies designed to ensure that it is relevant to the intended audience, among other things.

The charged companies were Banorte Asset Management, BTS Asset Management, Elm Partners Management, Hansen and Associates Financial Group, Linden Thomas Advisory Services, Macroclimate, McElhenny Sheffield Capital Management, MRA Advisory Group and Trowbridge Capital Partners, the SEC said in a statement.

The firms, which did not admit or deny the SEC’s allegations, were hit with penalties ranging from $50,000 to $175,000, the SEC said.

Representatives for each of the firms did not respond immediately to requests for comment.

This article was provided by Reuters.

Latest News

See all >>

N.J. Is Changing Who Has to Pay the ‘Mansion Tax’

The new state budget also increases the tax, but not as much as the governor wanted.

GoFundMe Launches Charitable Giving Funds with Vanguard, BlackRock

GoFundMe has 200 million users and could broaden the appeal of donor-advised funds for charitable giving — and centralize giving.

Warren Buffett Donates Record $6 Billion Berkshire Shares

The latest donation boosts his overall giving to charities to well over $60 billion.

BlackRock Looks to Expand Private Markets to Retirement Plans

The plans reportedly will include a 5% to 20% allocation to private assets, depending on the investor's age.

Capital Group Boosts Retirement Plan Service With Advisor-Focused Upgrades

 RecordkeeperDirect additions include “fund flexibility” offering investments from other fund families.

Firms Need to Get Back to the Basics of Organic Growth, Report Urges

Some that use artificial intelligence for prospecting are reporting huge gains in lead generation.