The SEC claimed the advertisements of the nine firms included untrue or unsubstantiated statements or testimonials, endorsements, or third-party ratings that lacked required disclosures. All nine of the following firms have agreed to settle the SEC's charges and to pay civil penalties:

Abacus Planning Group: $150,000 for publishing ads with untrue statement about 3^rd party rating and for including in their advertisements third-party ratings, some of which were more than five years old, without disclosing the dates on which the ratings were given or the periods of time upon which the ratings were based
AZ Apice Capital Management: $70,000 for disseminating ads that claimed to provide conflict-free advisory services, which it was not able to substantiate
Beta Wealth Group: $80,000 for disseminating ads that it could not substantiate regarding an award provided to a firm principal and for including in their advertisements third-party ratings, some of which were more than five years old, without disclosing the dates on which the ratings were given or the periods of time upon which the ratings were based
Droms Strauss Advisors: $85,000 for disseminating ads that claimed to provide conflict-free advisory services, which it was not able to substantiate
Howard Bailey Securities: $90,000 for disseminating ads claiming to contain two testimonials, but neither actually came from current clients and for advertised endorsements that did not disclose that the endorser was a paid, non-client of Howard Bailey in videos, on social media, and on physical objects such as bags and flags
Integrated Advisors Network: $325,000 for disseminating ads that claimed to provide conflict-free advisory services, which it was not able to substantiate
Professional Financial Strategies: $60,000 for including in their advertisements third-party ratings, some of which were more than five years old, without disclosing the dates on which the ratings were given or the periods of time upon which the ratings were based
Richard Bernstein Advisors: $295,000 for including in their advertisements third-party ratings, some of which were more than five years old, without disclosing the dates on which the ratings were given or the periods of time upon which the ratings were based
Callahan Financial Planning: $85,000 for publishing ads with untrue statement about 3^rd party rating, posting an ad falsely claiming it was a member of an organization that did not exist and for disseminating ads that claimed to provide conflict-free advisory services, which it was not able to substantiate

"The Marketing Rule's provisions regarding truthfulness, substantiation, and disclosure are critical to protecting investors," said Corey Schuster, Co-Chief of the SEC Division of Enforcement's Asset Management Unit. "The advertisements at issue in each of these actions violated the Marketing Rule and posed a serious risk of misleading investors. Investment advisers must comply with all aspects of the Marketing Rule, and we will continue to hold them accountable when they fail to do so."

Instant Insights /

SEC fines 9 more investment advisors $1.2M, in ongoing marketing rule crackdown

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