Arcadia fined $90K for custody rule violations; CCO to undergo training
By 
Aaron Nicodemus2022-09-21T20:33:00
A New York-based investment adviser will pay a $90,000 penalty for violating a Securities and Exchange Commission (SEC) rule by failing to obtain “surprise” examinations of advisory client assets.
Arcadia Wealth Management agreed Monday to the fine, a cease-and-desist order, and a censure. As part of a settlement, Arcadia’s chief compliance officer must complete 30 hours of compliance training relating to the Investment Advisers Act within one year.
Arcadia failed to obtain surprise examinations of client funds and securities for which it had custody from 2013-19, in violation of the SEC’s custody rule, according to the agency’s order. The SEC said Arcadia failed to implement policies and procedures to prevent violations of the rule.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefSEC proposes expansion of RIA custody rule
The Securities and Exchange Commission proposed registered investment advisers be required to place nearly any asset, not just cash and securities, with qualified custodians, thereby expanding the scope of client assets.
-
ArticleNew report shows how illegal mining intersects with financial crimes
Hundreds of billions of dollars in illicit funds move through the global financial system each year through the operations of environmental crimes linked to transnational criminal organizations. Illegal mining, in particular, directly exposes global financial institutions to a wide range of risks.
-
ArticleFTC warns VISA and other processors that company policies may lead to debanking
Visa, Mastercard, PayPal, and Stripe have received letters from the Federal Trade Commission, warning the companies to end any policies or terms of service that may result in the “debanking” of customers.
More from Regulatory Enforcement
-
ArticleCMA holds companies responsible for false claims, fake reviews ‘throughout supply chain’
Companies face large fines if they spread false marketing claims or fake reviews about their products and services—as well as those by suppliers—under a toughened competition regime in the U.K. aimed at enhancing consumer protection.
-
ArticleDOJ makes good on corporate-friendly enforcement policy with Balt resolution
The ink was barely dry on the U.S. Department of Justice’s new corporate enforcement policy (CEP) when the agency announced it would not prosecute Balt SAS for alleged bribery violations.
-
ArticleBoA settles class-action related to its dealings with Jeffrey Epstein
Bank of America has agreed to settle a class-action lawsuit alleging know-your-customer and other failings in its dealings with convicted sex offender Jeffrey Epstein.