SEC fines five investment advisers in marketing rule sweep
By Aaron Nicodemus2024-04-12T16:01:00
Five registered investment advisers agreed to pay a total of $200,000 in penalties for allegedly violating the Securities and Exchange Commission’s (SEC) amended marketing rule.
Rhode Island-based Gea Sphere agreed to pay a civil penalty of $100,000 for advertising hypothetical performance to the general public on its website “without adopting and implementing policies and procedures reasonably designed to ensure that the hypothetical performance was relevant to the likely financial situation and investment objectives of each advertisement’s intended audience,” the SEC said Friday in a press release.
Four other firms received reduced penalties by taking corrective steps in advance of being contacted by the agency. Miami-based Credicorp Capital and Houston-based Monex Asset Management each agreed to pay $30,000 to settle the charges, while Florida-based Bradesco Global Advisors and Illinois-based InSight Securities paid $20,000 each.