SEC Fines Another Advisory Firm for Form CRS Failures

AFSC has been registered with the SEC as an investment adviser since Oct. 3, 2005.

In its Form ADV dated March 31, 2022, AFSC reported approximately $420 million in regulatory assets under management and at least 376 individual clients.

SEC Rule 204-5(b)(3) requires retail RIAs to post their current Form CRS prominently on their website, if they have one, in a location and format that is easily accessible to retail investor clients.

AFSC “failed to comply with the Requirements by the regulatory deadlines, and began complying only after the Division of Examinations contacted the firm regarding the failure to file its Form CRS,” the SEC said in a statement.

Specifically, the Division of Exams contacted AFSC’s Chief Compliance Officer by email on Oct. 14, 2020, to alert the CCO that the firm had failed to file Form CRS, the SEC said.

“AFSC, however, still did not file its Form CRS at that time,” the agency said.

On Feb. 17, 2021, the exam division “again contacted AFSC but this time to announce an examination relating to the firm’s failure to file Form CRS,” the complaint states. “AFSC finally filed Form CRS with the Commission on March 31, 2021.”