RIA Compliance

Investment Adviser and its Owner Consent to SEC judgment for Fraudulent Misrepresentation

October 13, 2026 | Kelly Yoon

We previously posted about the Securities and Exchange Commission’s (SEC) enforcement action against Parker Terrill Austin (“Austin”) and Embarcadero Capital Advisors, Inc. (“Embarcadero”) for alleged misuse of client’s nonpublic personal information. In that case, each party consented to the entry of a separate judgment [against Austin and Embarcadero] last month. Those judgments also resolved allegations regarding misrepresentations by the same defendants.

In the complaint, in addition to the privacy claims, the SEC also alleged that Austin and Embarcadero made fraudulent misrepresentations in relation to the disclosure documents filed with the commission and given to clients. These allegations resulted in findings of violations of the antifraud provisions of Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940.

Investment Adviser Agrees to Settle with SEC Over Misuse of Client Information 

October 1, 2026 | Kelly Yoon

Highlighting the importance of properly handling clients’ personal information and complying with applicable fiduciary obligations, the Securities and Exchange Commission (SEC) reached a settlement last month that resulted in a final judgment brought against Parker Terrill Austin (“Austin”), an investment adviser based in California and founder of his advisory firm, Embarcadero Capital Advisors, Inc. (“Embarcadero”). The SEC filed its complaint in the U.S. District Court for the Central District of California on September 10, 2025.  

SEC Highlights Effective Compliance Controls for RIAs

September 10, 2026 | Kelly Yoon

The Securities and Exchange Commission (“SEC”) settled an administrative proceeding against Simplify Asset Management, Inc. (“Simplify”), a Delaware corporation and registered investment adviser that engages in transactions related to exchange-traded funds (“ETFs”), for multiple violations of the Investment Company Act of 1940 (the “Investment Company Act”). From July 2021 through November 2024, Simplify caused its ETF clients to violate multiple provisions of the Investment Company Act by failing to maintain and implement adequate compliance policies and procedures and by failing to adequately oversee certain regulatory requirements. The SEC has imposed a cease-and-desist order and a $400,000 civil money penalty, which Simplify must pay within 21 days of entry of the order.

SEC Enforces Timely SAR Filing Requirements

August 26, 2026 | Kelly Yoon

Highlighting the importance of timely filing of Suspicious Activity Reports (“SARs”), the Securities and Exchange Commission (“SEC”) entered a settled order against UBS Financial Services Inc. (“UBSFS”), a registered broker-dealer and investment adviser incorporated in Delaware and with its principal place of business in Weehawken, New Jersey. The SEC found that UBSFS failed to timely file certain SARs, in violation of Section 17(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 17a-8 thereunder. As part of the settlement, UBSFS agreed to cease and desist from committing or causing further violations of the relevant provisions, was censured, and agreed to pay a $20 million civil monetary penalty to the SEC within 30 days of entry of the order.

SEC Releases Risk Alert Regarding Investment Adviser Testimonials

December 30, 2025 | JP Dakak

On December 16^th, the SEC released a Risk Alert containing observations of investment advisers’ compliance with Rule 206(4)-1 (the “Marketing Rule”). The Commission provides risk alerts such as this to inform and remind investment advisers and stakeholders of advisers’ compliance requirements. Regarding testimonials and endorsements, the Commission observed common deficiencies in the following requirements: (1) clear and prominent disclosures, (2) disclosure of material terms of compensation arrangements, (3) disclosure of material conflicts, (4) oversight and compliance, (5) ineligible persons, and (6) promoter affiliated with the adviser. Continue reading ›

SEC Charge Investment Advisers with Misrepresenting AUM

December 16, 2025 | JP Dakak

Highlighting the importance of investment advisers’ proper calculation of assets under management (“AUM”), the SEC recently charged six investment advisers with misrepresenting their AUM.

The six connected firms, Bluesky Eagle Capital Management Ltd., Supreme Power Capital Management Ltd., AI Financial Education Foundation Ltd., AI Investment Education Foundation Ltd., Invesco Alpha Inc., and Adamant Stone Limited, were allegedly deficient in several areas, including claiming incorrect business addresses and falsely claiming to be public companies. AUM reporting, however, was the primary offense, as the cause of action was “making material misrepresentations in their SEC-filed Forms ADV that could not be substantiated.” While the advisers were allegedly engaged in several blatant forms of violative conduct, the SEC’s focus on their AUM misrepresentations underscores the importance of advisers’ proper calculation of AUM. Continue reading ›

Regulators Postpone and Withdraw Proposed Rules Impacting Investment Advisers

August 5, 2025 | Charlie Jarrett

Both the SEC and the U.S. Department of the Treasury’s Financial Crime Enforcement Network (“FinCEN”) recently announced actions to delay or remove pending regulations that would have increased compliance obligations for RIAs. FinCEN announced that it was postponing the effective date of final rules regarding investment advisers’ obligations under anti-money laundering (“AML”) regulations. The SEC announced that it was withdrawing the proposed cybersecurity risk management rule for RIAs, investment companies, and BDCs. Continue reading ›

SEC Announces Examination Priorities for 2025

November 11, 2024 | Charlie Jarrett

The SEC recently announced its annual Examination Priorities for the 2025 year. This annual release provides insight into the areas that the SEC plans to highlight when inspecting investment advisers, investment companies, broker-dealers, and other entities subject to examination by the SEC’s Division of Examinations. For investment advisers, the 2025 priorities largely are unchanged from the announced 2024 priorities, which we have previously discussed.

For FY25, the SEC again intends to focus on investment advisers who have never been examined, newly registered investment advisers, and investment advisers who have not been examined recently.

SEC Announces Enforcement Results for 2023

December 7, 2023 | Charlie Jarrett

With the end of the federal government’s fiscal year, the Securities and Exchange Commission (SEC) once again recently released results from the enforcement program, covering November 2022 through October 2023. The release included cumulative totals and highlighted individual cases and enforcement areas of concentration. The annual release serves as a roadmap for where the SEC is spending its resources, and what conduct will likely lead to enforcement actions.

During fiscal year 2023, the SEC’s Enforcement Division filed 3% more total enforcement actions than during 2022. This included an 8% increase in “stand-alone,” or original actions, along with increases in the number of “follow-on” administrative proceedings. These “follow-on” actions are typically filed after an associated criminal, civil, or other regulatory action, and look to impact an individual’s ability to conduct business in the securities industry.

Investment Advisers and the Annual Updating Amendment Process

January 6, 2023 | Charlie Jarrett

For the majority of investment advisers registered with either the SEC or state regulators, annual updating amendment season is once again upon us. Advisers whose fiscal year ends on December 31 are required to file their Form ADV annual amendment within 90 days or by March 31, 2023.

While investment advisers are under a continuing obligation to update their disclosure documents when certain or material information becomes inaccurate, the annual update is a universal requirement designed to ensure that the filing information for investment advisers is up to date. This serves an important function in that it allows clients and potential clients to review the publicly filed ADVs for investment advisers on FINRA’s BrokerCheck and the SEC’s IADP. Additionally, regulators review the filings and the underlying analytics to track industry trends, plan examination targets, and conduct regulatory sweeps.