SEC Sanctions Three Firms under Compliance Program Initiative

The SEC sanctioned investment advisory firms Modern Portfolio Management Inc., Equitas Capital Advisers LLC and Equitas Partners LLC for repeatedly ignoring problems with their compliance programs.The enforcement actions arose from the SEC Compliance Program Initiative, which targets firms previously warned by SEC examiners about compliance deficiencies and violations of Investment Advisers Act Rule 206(4)-7 ("Compliance Procedures and Practices"). Many of the compliance failures involved either significant mis-statements to clients or direct injury to clients; e.g., over-charging.

See: SEC Press Release; SEC Order against MPM; SEC Order against Equitas Firms.