©Reuters. FILE PHOTO: The headquarters of the U.S. Securities and Exchange Commission (SEC) is seen in Washington, July 6, 2009. REUTERS/Jim Bourg/File Photo
WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission on Monday ordered nine investment advisory firms to pay a total of $850,000 in civil penalties for advertising hypothetical performance without implementing new policies required by regulators.
The SEC found that the companies had not met the requirements of a 2020 rule that prohibits advisors from touting hypothetical performance to investors unless they have policies designed to ensure, among other things, that they are relevant to the intended audience .
The companies charged were Banorte Asset Management, BTS Asset Management, Elm Partners Management, Hansen and Associates Financial Group, Linden Thomas Advisory Services, Macroclimate, McElhenny Sheffield Capital Management, MRA Advisory Group and Trowbridge Capital Partners, the SEC said in a statement.
The companies, which neither admitted nor denied the SEC’s allegations, were hit with fines ranging from $50,000 to $175,000, the SEC said.
Representatives from each of the companies did not immediately respond to requests for comment.