CIBC World Markets Corp. (CRD #630, New York, New York) received a censure and fine of $75,500, and—if the firm begins marketing or selling hedge funds—required to file all advertising materials relating to hedge funds with NASD’s Advertising Department at least 10 business days prior to use for three years from the date of acceptance of this AWC. According to the findings, the firm used various types of sales literature in the marketing of hedge funds and funds of hedge funds that contained inadequate risk disclosure and improper comparisons. The regulators determined that many of the materials contained generalized risk disclosure but failed to address the specific risk attributed to the investments offered. The firm accepted the fine and censure but did not admit or deny the accusations. (NASD Case #CAF040114)
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