Bristol Group, Inc.'s Violation of Reporting Provisions under Investment Advisers Act, Exercises of Business

Download Bristol Group, Inc.'s Violation of Reporting Provisions under Investment Advisers Act and more Exercises Business in PDF only on Docsity! UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION INVESTMENT ADVISERS ACT OF 1940 Release No. 4922/ June 1, 2018 ADMINISTRATIVE PROCEEDING File No. 3-18514 In the Matter of BRISTOL GROUP, INC., Respondent. ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTIONS 203(e) AND 203(k) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER I. The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 (“Advisers Act”) against Bristol Group, Inc. (“Bristol” or “Respondent”). II. In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over it and the subject matter of these proceedings, which are admitted, Respondent consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”), as set forth below. III. On the basis of this Order and Respondent’s Offer, the Commission finds1 that: 1 The findings herein are made pursuant to Respondent’s Offer of Settlement and are not binding on any other person or entity in this or any other proceeding. 2 Summary 1. This matter involves Bristol Group Inc.’s violations of the reporting provisions of Rule 204(b)-1 under the Advisers Act. Rule 204(b)-1 requires certain investment advisers with at least $150 million in private fund assets under management to file and periodically update a report on Form PF to provide information about the private funds they manage. From 2013 through 2016, Bristol was subject to the reporting requirements of Rule 204(b)-1, but failed to file or update a report on Form PF. Respondent 2. Bristol Group, Inc. is a California corporation with its principal place of business in San Francisco, California. Bristol has been registered with the Commission as an investment adviser since 1981. On its Form ADV dated March 31, 2017, Bristol reported that it had approximately $2 billion in regulatory assets under management. Facts 3. On October 31, 2011, the Commission adopted Rule 204(b)-1under Section 204(b) of the Advisers Act, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act. See Reporting by Investment Advisers to Private Funds and Certain Commodity Pool Operators and Commodity Trading Advisors on Form PF, Investment Advisers Act Release No. 3308 (Oct. 31, 2011) (“Form PF Adopting Release”). 4. Rule 204(b)-1(a) requires an investment adviser to complete and file a report on Form PF if the investment adviser (1) is registered or required to be registered under Section 203 of the Advisers Act; (2) acts as an investment adviser to one or more private funds; and (3) as of the end of its most recently completed fiscal year, managed private fund assets of at least $150 million. Rule 204(b)-1(e) requires such advisers to file an updated report on Form PF at least annually. Most of the private fund advisers that are required to report on Form PF need only provide certain basic information regarding private funds they advise in addition to information about their private fund assets under management, their funds’ performance and use of leverage. See Form PF Adopting Release at 20. Section 204(b)(11) of the Advisers Act requires the Commission to report annually to Congress on how the Commission has used Form PF data to monitor the markets for the protection of investors and the integrity of the markets. 5. The information collected on Form PF is important to financial regulators. Form PF primarily was designed to provide the Financial Stability Oversight Council with information important to its understanding and monitoring of systemic risk in the private fund industry. See Form PF Adopting Release at 15, 17. In addition, the Commission uses information collected on Form PF in its regulatory programs, including examinations, investigations and investor protection efforts relating to private fund advisers. Id. at 17. The Commission also publishes aggregated information and statistics derived from Form PF data to inform the public about the private fund industry.