Top 5 Deficiencies

Top 5 Deficiencies
  1. Inaccurate ADV I and II
  2. In accordance with Commission Rule 830-X-3-.03, if the Form ADV becomes inaccurate for any reason, the investment adviser shall file an amended Form ADV within 30 days.

  3. No Audited Balance Sheet
  4. In accordance with Commission Rule 830-X-3-.05(3)(a), annually an audited balance sheet is to be submitted to the Commission staff within 60 days after the close of the Firm’s fiscal year.

  5. Inadequate Written Procedures
  6. In accordance with Commission Rule 830-X-3-.13(3)(b), as a part of its responsibility under this rule, every dealer, issuer or investment adviser shall establish, maintain and enforce written procedures, a copy of which shall be kept in each business office, which shall set forth the procedures adopted by the dealer, issuer or investment adviser to comply with the following duties imposed by this rule, and shall state at which business office or offices the dealer, issuer or investment adviser keeps and maintains the records required by Rules 830-X-3-.16.

  7. Improper Advertising
  8. In accordance with Commission Rule 830-X-3-.22(1)(e) it is a fraudulent, deceptive or manipulative act, practice or course of business, within the meaning of the state securities act, for an investment adviser, directly or indirectly, to publish, circulate or distribute any advertisement which: Contains any untrue statement of a material fact, or omits to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading, or which is otherwise false or misleading.

  9. Failure to Supervise
  10. In accordance with Commission Rule 830-X-3-.13(1), every dealer, issuer or investment adviser, and officers, directors and partners thereof, shall exercise diligent supervision over all the securities activities of its associated persons.