The Securities and Exchange Commission has announced a penalty against a New York-based company for violations involving Form CRS, Think Advisor reports.
The action was taken against Adirondack Financial Services Corp. (AFSC) over its failure to file Form CRS with the SEC and post it on its web site in a timely fashion. Every broker or dealer registered with the SEC is required to file Form CRS, a new customer or client relationship summary.
The SEC said AFSC was required to file its initial Form CRS with the commission and post it on its web site by June 30, 2020 but the advisory firm did not become compliant with those requirements until March and April 2021. This was a willful violation of Advisers Act Section 204 and Rules 204-1 and 204-5 thereunder, the SEC said. The order noted that the firm began complying with the requirement only after it was contacted by the Division of Examinations at least two previous times regarding its failure to file Form CRS.
AFSC was ordered to pay a $25,000 civil penalty in addition to being censured, and was ordered to cease and desist from any other violations of Advisers Act Section 204 and Rules 204-1 and 204-5 thereunder.
The SEC charged 12 other firms in February for failing to meet their Form CRS requirements. https://www.securitieslaw.com/blog/2022/02/sec-charges-12-more-firms-for-failing-to-meet-form-crs-requirements/
The attorneys at Lewitas Hyman include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. We regularly monitor SEC, FINRA and other self-regulatory organizations’ rule-making activities to help ensure that our clients are aware of any new policies, while assisting them in implementing any recommended changes. If your firm is facing an investigation from a regulatory agency, please contact Lewitas Hyman at (312) 291-4600or through our online contact form.