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By 
September 20, 2024 at 01:37 PM
What You Need to Know
- The firm was fined $150,000 for failing to spot-check the books and records or conduct periodic inspections of the advisors it supervised.
- JZAI also failed to conduct compliance training for all supervised persons, the SEC says.
- JZAI has taken steps to fix the problems.
The Securities and Exchange Commission has fined Jordan/Zalaznick Advisers $150,000 for failing to spot-check the books and records or conduct periodic inspections of the advisors it supervised.
According to the SEC’s order, from December 2018 until May 2022, JZAI failed to implement certain aspects of its compliance program.
Among other things, “JZAI’s compliance policies and procedures called for JZAI to conduct compliance training for all supervised persons, which JZAI failed to do,” the SEC said.
“JZAI also did not conduct spot-checks of books and records required to be maintained by JZAI, nor did JZAI conduct periodic inspections of the principal places of business of its relying advisers, both of which were required by its compliance manual,” according to the SEC.
JZAI is a Delaware corporation with its primary place of business in New York. JZAI has been registered with the commission as an RIA since March 30, 2012, and describes itself as investing in companies with up to $200 million in enterprise value in various industries including manufacturing, commercial and industrial services and healthcare.
As of March, JZAI reported approximately $723 million in assets under management.
During the relevant period, JZAI was registered as the filing advisor for an umbrella registration listing multiple relying advisors, some of which had foreign offices and operations.
A condition of umbrella registration is that every advisor under the “umbrella” operate under a single code of ethics and a unified compliance program administered by a single chief compliance officer, the SEC order states.
