SEC Files Notice of RIA Cancellation for Insufficient Assets

SEC Files Notice of RIA Cancellation for Insufficient Assets (2/9/12; In re Gravity Capital Partners) In what may become a common occurrence, the SEC has filed a Notice of Intention to Cancel an adviser’s registration for failing to maintain sufficient assets under management. The Notice indicates that the SEC believes that the adviser does not have sufficient assets under management (now $90 Million) to maintain SEC registration. The adviser has 30 days to object. 

OUR TAKE: It is much easier to withdraw to state registration rather than wait for the SEC to file a Notice of Cancellation. Also, the SEC could pursue enforcement proceedings for making false statements on an ADV. 

 

What did you think of this article?




Trackbacks
  • No trackbacks exist for this post.
Comments
  • No comments exist for this post.
Leave a comment

Submitted comments are subject to moderation before being displayed.

 Name

 Email (will not be published)

 Website

Your comment is 0 characters limited to 3000 characters.