What You Need to Know
- The firm was ordered to pay a $25,000 civil money penalty.
- It missed its regulatory deadlines.
- The firm failed to deliver Form CRS to its retail investor clients and failed to post the form on its website.
The Securities and Exchange Commission on Wednesday ordered Disciplined Capital Management LLC to pay a $25,000 civil money penalty for failing to file a Customer Relationship Summary (Form CRS) with the agency and to deliver the form to clients by its regulatory deadlines.
According to the order, DCM was required to file its initial Form CRS with the commission as Part 3 of its Form ADV and to begin delivering the form to prospective and new retail investor clients, as applicable, by June 30, 2020.
DCM was further required to deliver its Form CRS to retail investor clients by July 30, 2020.
“The firm failed to file and deliver Form CRS by these deadlines, not becoming compliant until in or after late March 2021,” the order states. “As a result, DCM violated Advisers Act Section 204 and Rules 204-1 and 204-5 thereunder.
What Your Peers Are Reading
DCM began complying only after the Division of Examinations contacted the firm regarding the failure to file its Form CRS, the order states.