SEC Sweep into Marketing Rule Violations Results in Charges Against Nine Investment Advisers
The Securities and Exchange Commission today announced charges against nine registered investment advisers for advertising hypothetical performance to the general public on their websites without adopting and/or implementing policies and procedures required by the Marketing Rule. All nine firms have agreed to settle the SEC’s charges and to pay $850,000 in combined penalties. The firms are: Banorte Asset Management Inc. BTS Asset Management Inc. Elm Partners Management LLC Hansen and Associates Financial Group Inc Linden Thomas Advisory Services LLC Macroclimate LLC McElhenny Sheffield Capital Management LLC MRA Advisory Group Trowbridge Capital Partners LLC Registered investment advisers are prohibited from including any hypothetical performance in their advertisements unless they have adopted and implemented policies and procedures reasonably designed to ensure that the hypothetical performance is relevant to the likely financial situation and invest