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US SEC settles charges with 9 investment advisers for violations of marketing rule
(MENAFN) On Monday, the US Securities and Exchange Commission (SEC) revealed that it has settled charges with nine investment advisers for violations related to the marketing rule. The infractions involved the dissemination of advertisements that contained false or unsubstantiated statements of material fact. Additionally, the ads included testimonials, endorsements, or third-party ratings without the required disclosures, failing to meet regulatory standards for accuracy and transparency.
The nine investment firms involved in these cases have agreed to a total of USD1.24 million in combined civil penalties as part of their settlement. This collective financial penalty reflects the SEC's efforts to hold firms accountable for their marketing practices and to enforce compliance with the rules designed to protect investors from misleading information.
Corey Schuster, co-chief of the SEC Division of Enforcement’s Asset Management Unit, emphasized the critical nature of the Marketing Rule’s provisions. He stressed that these rules regarding truthfulness, substantiation, and proper disclosure are fundamental in ensuring that investors receive accurate and complete information. Schuster noted that the advertisements at the center of these violations did not adhere to these requirements, thereby posing a serious risk of misleading potential and current investors.
By taking action against these firms, the SEC aims to address and rectify the risks posed by deceptive marketing practices. The enforcement underscores the agency’s commitment to maintaining high standards in investment advertising and ensuring that firms adhere to regulatory guidelines designed to protect investors and maintain market integrity.
The nine investment firms involved in these cases have agreed to a total of USD1.24 million in combined civil penalties as part of their settlement. This collective financial penalty reflects the SEC's efforts to hold firms accountable for their marketing practices and to enforce compliance with the rules designed to protect investors from misleading information.
Corey Schuster, co-chief of the SEC Division of Enforcement’s Asset Management Unit, emphasized the critical nature of the Marketing Rule’s provisions. He stressed that these rules regarding truthfulness, substantiation, and proper disclosure are fundamental in ensuring that investors receive accurate and complete information. Schuster noted that the advertisements at the center of these violations did not adhere to these requirements, thereby posing a serious risk of misleading potential and current investors.
By taking action against these firms, the SEC aims to address and rectify the risks posed by deceptive marketing practices. The enforcement underscores the agency’s commitment to maintaining high standards in investment advertising and ensuring that firms adhere to regulatory guidelines designed to protect investors and maintain market integrity.
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