A White Plains investment adviser is one of 27 financial firms nationwide sanctioned by the U.S. Securities and Exchange Commission for not reporting their business practices to clients.
The SEC censured Dynamic Trading Management on July 26 and imposed a $10,000 fine for willfully violating regulations.
Dynamic Trading Management, owned and operated by Timothy P. Bradley Jr., neither admitted nor denied the SEC’s findings, according to a cease and desist order, but consented to the sanctions.
Investment advisers and broker-dealers are required to give individual investors a copy of Form CRS ”“ a client relationship summary ”“ that is meant to help investors make more informed choices. The report describes the type of services offered, the costs of services, conflicts of interest and disciplinary history.
The SEC enacted the CRS regulation two years ago, and as of June 30, 2020, investment advisers and broker-dealers were required to give the report to clients and prospective customers.
Dynamic Trading Management has been registered as an investment adviser with the SEC since 2006. As of Dec. 31, it managed about $35 million in assets for 73 people.
Dynamic missed the deadline, according to the cease and desist order, and the SEC warned the firm twice. On March 2, eight months overdue, it delivered a 12-page report to existing clients.
Neither the firm nor its employees have been involved in any disciplinary events, according to the report. It says Bradley also is a registered broker for Cabot Lodge Securities and is compensated for trades placed through Cabot.
“To mitigate this conflict of interest for Dynamic clients,” the report states, trades for Dynamic accounts are not done through Cabot.
Dynamic’s $10,000 penalty was on the low end. The fines against 21 investment advisers and six broker-dealers ranged from $10,000 to $97,523, and totaled $910,092.
