SEC Fines 27 Financial Firms for Violation Related to Form CRS Filing and Delivery

The Securities and Exchange Commission (SEC) recently announced that it has imposed fines to 21 investment advisers and 6 broker-dealers for violations related to Form CRS filling and delivery.

Wanna Know How to Reach Our Audience of Millions at Fazzaco?​

The firms/individuals are: Altschuler, James Stephen; Canton Hathaway LLC; Carmel Capital Management LLC; Castle Wealth Planning LLC; Cohen Klingenstein LLC; Dynamic Trading Management LLC; Eastside Financial Advisors LLC; Embree Financial Group Inc.; Harold Davidson & Associates Inc.; John A. Bysko Associates; Madden Funds Management Ltd.; Medallion Wealth Advisors LLC; Mighty Oak Strong America Investment Company; Minot DeBlois Advisors LLC; O'Brien Greene & Co. Inc.; Paratus Financial Inc.; Quantitative Asset Management LLC; Sauberan & Company LLC; Summit Financial Advisors Inc.; Cavanaugh Group Inc.; Westbourne Investments Inc.; Bill Parker Agency; Birkelbach & Co.; Capital Portfolio Management Inc.; Greentree Investment Services Inc.; ST Invest LLC d/b/a Trade App; Tradier Brokerage Inc.

According to the regulator, filing Form CRS is mandatory for every broker or dealer registered with it and the commission may use the information provided in Form CRS to manage its regulatory and examination programs.

On June 5, 2019, the SEC required SEC-registered investment advisers and SEC-registered broker-dealers to file Forms CRS and deliver them to prospective and new retail investors by June 30, 2020, and deliver them to existing retail investor clients or customers by July 30, 2020. Further, these companies were required to post their current Form CRS on their website, if they had one.

However, the commission find that each of the firms charged today failed to file or deliver its Form CRS, or post it to its website, until being twice reminded of the missed deadlines by their regulators—in the case of investment advisers, by the SEC’s Division of Examinations, and in the case of broker-dealers, by the Financial Industry Regulatory Authority.

“Form CRS is intended to provide retail investors with a brief summary about the services a firm offers, its fees, conflicts of interest, and other information that can help investors make more informed choices,” said Adam S. Aderton, Co-Chief of the SEC Enforcement Division’s Asset Management Unit. “By failing to file, deliver, and post this form, these firms deprived their clients and customers of the benefits of that information.”