SEC Charges Titan Global Capital Management for Misleading Advertisements
The Securities and Exchange Commission has charged Titan Global Capital Management USA LLC, a fintech investment adviser, for using misleading claims in its advertisements. The commission found that Titan had used hypothetical performance metrics that were misleading from August 2021 to October 2022.
The commission stated that when offering and marketing complex strategies, investment advisers must ensure the accuracy of disclosures to investors. Osman Nawaz, Chief of Enforcement’s Complex Financial Instruments Unit, emphasized the importance of accurate disclosures.
Titan, a New York fintech advisor, has agreed to a cease-and-desist order, a censure, and monetary penalties. The advisor will pay $192,454 in disgorgement, prejudgment interest, and a $850,000 civil penalty. The civil penalty will be distributed to affected clients.
The commission also highlighted that Titan had misguided retail investors and failed to obtain client signatures for certain transactions. This charge marks the first instance of the SEC taking action on its advisor marketing rule, which was updated in 2021 to reflect market developments and regulatory changes.