SEC Charges Fintech Investment Adviser for Misleading Advertisements
The Securities and Exchange Commission has charged Titan Global Capital Management USA LLC, a fintech investment adviser, for using misleading performance metrics in their advertisements. The commission found that the adviser made false claims between August 2021 and October 2022.
Osman Nawaz, Chief of Enforcement’s Complex Financial Instruments Unit, emphasized that investment advisers must ensure the accuracy of their disclosures when offering complex strategies to investors. The SEC has issued a cease-and-desist order, a censure, and a penalty of $192,454 in disgorgement and prejudgment interest, in addition to a $850,000 civil penalty that will be paid to affected clients.
The SEC also noted that Titan failed to obtain client signatures for certain transactions that required them, and misled retail investors. This charge marks the first instance of the SEC taking action under its updated adviser marketing rule, which was revised in 2021 to reflect changes in the market and regulatory landscape.