SEC Charges Five Advisory Firms for Custody Rule Violations

The Securities and Exchange Commission today announced charges against five investment advisers for failing to comply with requirements related to the safekeeping of client assets. Three of the firms were also charged with failing to timely update SEC disclosures regarding audits of their private fund clients’ financial statements. All five advisory firms have agreed to settle the SEC’s charges and to pay more than $500,000 in combined penalties. The advisory firms are: Lloyd George Management (HK) Limited; Bluestone Capital Management LLC; The Eideard Group, LLC; Disruptive Technology Advisers LLC; and Apex Financial Advisors Inc. According to the SEC’s orders, the five firms failed to do one or more of the following: have audits performed; deliver audited financials to investors in a timely manner; and/or ensure a qualified custodian maintained client assets.