- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-09-06T20:36:00
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.
The custody rule, part of the Investment Advisers Act, requires advisers who have custody of clients’ funds or securities to follow specific requirements to prevent the loss, misuse, or misappropriation of those assets. The SEC in February proposed amendments to the rule that would require registered investment advisers to place nearly any asset, not just cash and securities, with qualified custodians.
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California-based investment adviser American Infrastructure Funds agreed to pay more than $1.6 million to settle charges by the Securities and Exchange Commission regarding multiple breaches of its fiduciary duty to clients.
Mortgage Industry Advisory Corp. agreed to pay $100,000 to settle allegations levied by the Securities and Exchange Commission it failed to adopt and implement written compliance policies and procedures, conduct annual reviews, and establish and enforce a code of ethics.
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.
RTX Corp., the parent company of Raytheon, disclosed in a public filing it has reserved $1.24 billion to resolve legacy legal matters with the Department of Justice, Securities and Exchange Commission, and Department of State.
The U.K. Financial Conduct Authority issued a fine of $4.5 million (3.5 million pounds) against a U.K.-based subsidiary of crypto platform Coinbase for providing services to high-risk customers in violation of FCA rules.
Admera Health agreed to pay more than $5.5 million to resolve allegations first brought by two whistleblowers that it paid kickbacks to third-party contractors, the Department of Justice said.
