The Securities and Exchange Commission said Tuesday that it has charged five investment advisors with failing to comply with requirements related to the safekeeping of client assets, violating the agency's custody rule.
Three of the firms were also charged with failing to timely update SEC disclosures regarding audits of their private fund clients' financial statements, the SEC said.
All five advisory firms have agreed to settle the SEC's charges and to pay more than $500,000 in combined penalties.
The SEC said the advisory firms charged Tuesday are:
- Apex Financial Advisors Inc.
- Lloyd George Management (HK) Limited;
- Bluestone Capital Management LLC;
- The Eideard Group, LLC;
- Disruptive Technology Advisers LLC; and
This is the second set of cases that the Commission has brought as part of a targeted sweep concerning violations of the Investment Advisers Act's Custody Rule and Form ADV requirements by private fund advisers.
Last September, the SEC levied actions against registered investment advisors for custody rule and Form ADV violations. Two of the firms violated just the custody rule and one Form ADV, while six of the firms violated both.
