The Securities and Exchange Commission (SEC) announced penalties against five investment advisers as part of its second targeted sweep regarding violations of its custody rule and Form ADV requirements.
The firms, each agreeing to pay fines ranging from $50,000 to $225,000, were accused of failing to comply with requirements related to the safekeeping of client assets, according to an SEC press release Tuesday. Three of the firms were cited for disclosure failures regarding audits of their private fund clients’ financial statements.
