The United States Securities and Exchange Commission (SEC) on Monday ordered nine investment advisory firms to pay a total of US$850,000 in civil penalties for advertising hypothetical returns without applying the new policies required by regulators.
The SEC found that the firms had not met the requirements of a 2020 rule that prohibits advisors from promoting hypothetical returns unless they have policies designed to ensure they are relevant to their intended audiences, among other things.
The companies charged 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 companies, which neither admitted nor denied the SEC’s allegations, were fined between $50,000 and $175,000, the SEC said.
Representatives for each of the companies did not immediately respond to requests for comment.
Fountain: Reuters
Source: Gestion
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