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SEC Fines Nine RIA Firms $850K for Violating Marketing Rules 

SEC Fines Nine RIA Firms $850K for Violating Marketing Rules, featured by top securities fraud attorneys, the White Law Group

Nine RIA Firms Fined $850K in Regulatory Sweep

In a recent crackdown by the Securities and Exchange Commission (SEC), nine Registered Investment Advisory (RIA) firms reportedly have collectively been fined $850,000 for violating marketing rules. These firms were allegedly found to have improperly advertised hypothetical performance data to the public, running afoul of SEC regulations designed to protect investors. 

According to the announcement, the heart of the matter lies in the SEC’s Marketing Rule, which mandates that these firms must establish and effectively implement policies and procedures ensuring that hypothetical performance data is relevant to the financial situations and investment objectives of their target audience. 

During a regulatory sweep, it was reportedly discovered that these firms were allegedly disseminating these advertisements widely on their websites. Two of the firms had purportedly failed to maintain records of these advertisements, compounding their regulatory violations. 

Without admitting guilt, all nine firms have agreed to pay penalties, with individual civil fines ranging from $50,000 to $175,000. In addition to the financial penalties, they have also reportedly consented to be censured, signifying an official reprimand, and have committed to ceasing violations of the cited provisions. Importantly, they have reportedly pledged not to advertise hypothetical performance data without first implementing the necessary policies and procedures to ensure compliance with SEC rules. 

The firms sanctioned in the sweep are as follows: 

Banorte Asset Management Inc.
BTS Asset Management Inc.
Elm Partners Management
Hansen and Associates Financial Group Inc.
Linden Thomas Advisory Services
McElhenny Sheffield Capital Management
MRA Advisory Group
Trowbridge Capital Partners 

National Securities Attorneys 

If you are concerned about investment losses with your advisor, please call the securities attorneys of The White Law Group at (888)637-5510 for a free consultation.   

The White Law Group, LLC is a nationally recognized law firm specializing in securities fraud, securities arbitration, investor protection, and securities regulation/compliance. Our primary commitment is to assist investors across all 50 states in pursuing claims against their financial professionals or brokerage firms. Since our establishment in 2010, we have successfully managed over 700 FINRA arbitration cases. 

Our firm is dedicated to representing investors in a wide range of securities-related claims. These include cases involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, unauthorized trading, and various other securities issues. 

With a wealth of experience exceeding 30 years in the field of securities law, The White Law Group possesses the knowledge and skills necessary to help you recover your investment losses. To learn more about our services and how we can assist you, please visit our official website at whitesecuritieslaw.com. 

Tags: , Last modified: September 14, 2023