- incorrectly classifying one funding fund as decrease danger than it truly was
- permitting some shoppers to be positioned into unsuitable investments
- inserting itself in a battle of curiosity with sure shoppers, and
- failing to take care of adequate and present “know your consumer” info, suitability info, due diligence and analysis, conflicts, private buying and selling and danger administration.
Fieldhouse had phrases and circumstances imposed on it following the examination which included hiring an unbiased compliance monitor for one 12 months. These phrases and circumstances aimed to handle the deficiencies recognized and had been eliminated as soon as they had been remedied.
The agency’s former CEO and chief compliance officer (CCO), William Douglas Sereda, additionally acknowledged his failures in satisfactory efficiency of CCO and supreme designated particular person (UDP) duties and agreed to pay $25,000 in settlement. Sereda additionally agreed to not search registration as a CCO or UDP of a registrant within the subsequent 5 years.
A former FCMI portfolio supervisor agreed a separate settlement with the BCSC in 2023 and paid $60,000 to the fee for steering shoppers into an unsuitable funding. Sixteen of Todd David MacSween’s shoppers invested roughly $4.3 million in one of many agency’s funding funds, the Class M World Macro Core Fund, regardless of the fund being too dangerous for every of them and unsuitable for his or her wants, targets and private and monetary circumstances.
