SEC v. Brite Advisors USA, Inc.

Brite Advisors USA, Inc. allegedly failed to comply with Commission requirements for the safekeeping of client assets and for failing to disclose material risks and conflicts of interest associated with recommendations to clients to use a related firm in Australia as a custodian. According to the SEC, since 2019, Brite USA failed to comply with the custody rule requirement that it obtain an internal control report as to the safeguarding of client funds and securities maintained by Brite Australia. The complaint alleged that Brite USA breached its fiduciary duties to its clients by failing to fully disclose conflicts of interest and risks to client assets resulting from Brite Australia’s borrowing of millions of dollars using Brite USA’s client assets as collateral to provide operational funding to Brite USA and other related companies.

Summary generated from official Securities and Exchange Commission press release