04.12.24
SEC Fines Five RIAs Over Marketing Rule Violations
by: Karmen Alexander
The U.S. Securities and Exchange Commission (SEC) censured and fined five registered investment advisory (RIA) firms a total of $200,000 over violations of its updated marketing rule, which took effect in 2022. The RIAs advertised hypothetical performance to customers on their websites without ensuring that the performance was “relevant to the likely financial situation and investment objectives” of their customers or prospects. The firms additionally violated the Investment Advisers Act of 1940, according to the SEC. The SEC in September censured nine RIAs and ordered them to pay $850,000 combined penalties for violating the marketing rule.
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