SEC v. Brite Advisors USA, Inc., No. LR-26329, Southern District of New York (June 17, 2025) — Press Release
raw: Brite Advisors USA, Inc.
Brite Advisors USA, Inc., No. 1:23-cv-10212 (S.D.N.Y. June 17, 2025)
Brite Advisors USA, Inc. obtained a final judgment for violating custody and disclosure rules regarding $400 million in client assets and is now barred from acting as an investment adviser.
The SEC obtained a final judgment against Brite Advisors USA, Inc. for failing to comply with custody rules and fiduciary disclosure requirements. The firm managed nearly $400 million in assets through its related Australian affiliate, Brite Advisors Pty Ltd, while neglecting necessary internal control reports. Brite USA faced charges for failing to disclose that its affiliate used client assets as collateral to secure millions of dollars in operational funding.
The SEC obtained a final judgment against New York-based investment adviser Brite Advisors USA, Inc. for violations involving the Investment Advisers Act of 1940. The firm advised on nearly $400 million in client assets held by its related Australian entity, Brite Advisors Pty Ltd, but failed to comply with mandatory custody rule requirements. Specifically, Brite USA failed to obtain required internal control reports and neglected to disclose material conflicts of interest. These conflicts involved Brite Australia using client assets as collateral to borrow millions of dollars for operational funding. Through a consent judgment, Brite USA was permanently enjoined from further violations and barred from acting as an investment adviser. The firm resolved the matter without admitting or denying the allegations.
Exhibits & Attached Documents (1)
Extracted insights
- $400.00M $400 million $100M–$1B
- company Brite Australia
- organization Brite Australia
- company Brite USA
- organization Brite USA
- agency sec litigation
- organization SEC's New York Regional Office
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- person sheldon l. pollock
- person travis hill
- Securities And Exchange Commission obtained final judgment against Brite Advisors Usa, Inc.
- Securities And Exchange Commission charged Brite Usa with custody rule and disclosure violations
- Brite Usa failed to comply with Commission requirements for safekeeping of client assets
- Brite Usa failed to disclose material risks and conflicts of interest
- Brite Usa advised $400 million of client assets maintained by Brite Australia
- Brite Usa breached fiduciary duties to its clients
- Brite Australia borrowed millions of dollars using Brite Usa's client assets as collateral
- Securities And Exchange Commission imposed conduct-based injunction on Brite Usa
- Travis Hill handled Sec litigation
- Sheldon L. Pollock supervised Sec's New York Regional Office
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26329 / June 17, 2025 Securities and Exchange Commission v. Brite Advisors USA, Inc., No. 1:23-cv-10212 (S.D.N.Y. filed Nov. 21, 2023) SEC Obtains Final Judgment Against Investment Adviser for Custody Rule and Disclosure Violations On June 4, 2025, the Securities and Exchange Commission obtained a final judgment by consent against New York-based investment adviser Brite Advisors USA, Inc. (“Brite USA”). In November 2023, the Commission charged Brite USA with failing to comply with Commission requirements for the safekeeping of client assets and for failing to disclose material risks and conflicts of interest associated with Brite USA’s recommendations to clients to use a related firm in Australia as a custodian. The SEC's complaint,filed in the United States District Court for the Southern District of New York, alleged that Brite USA advised onnearly $400 million of client assets maintained by Brite Advisors Pty Ltd. (“Brite Australia”), an Australian financial services company under common control with Brite USA. The complaint alleged that 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. In addition, 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. Brite USA consented to the entry of a final judgment, without admitting or denying the allegations in the complaint, that permanently enjoins it from violating Section 206(2) of the Investment Advisers Act of 1940 and Rule 206(4)-2 thereunder, and imposes a conduct-based injunction that permanently enjoins it from acting as an investment adviser. The SEC’s litigation was handled by Travis Hill, Jonathan Grant, and Wendy Tepperman, and was supervised by Sheldon L. Pollock of the SEC’s New York Regional Office.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26329 / June 17, 2025 Securities and Exchange Commission v. Brite Advisors USA, Inc., No. 1:23-cv-10212 (S.D.N.Y. filed Nov. 21, 2023) SEC Obtains Final Judgment Against Investment Adviser for Custody Rule and Disclosure Violations On June 4, 2025, the Securities and Exchange Commission obtained a final judgment by consent against New York-based investment adviser Brite Advisors USA, Inc. (“Brite USA”). In November 2023, the Commission charged Brite USA with failing to comply with Commission requirements for the safekeeping of client assets and for failing to disclose material risks and conflicts of interest associated with Brite USA’s recommendations to clients to use a related firm in Australia as a custodian. The SEC's complaint,filed in the United States District Court for the Southern District of New York, alleged that Brite USA advised onnearly $400 million of client assets maintained by Brite Advisors Pty Ltd. (“Brite Australia”), an Australian financial services company under common control with Brite USA. The complaint alleged that 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. In addition, 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. Brite USA consented to the entry of a final judgment, without admitting or denying the allegations in the complaint, that permanently enjoins it from violating Section 206(2) of the Investment Advisers Act of 1940 and Rule 206(4)-2 thereunder, and imposes a conduct-based injunction that permanently enjoins it from acting as an investment adviser. The SEC’s litigation was handled by Travis Hill, Jonathan Grant, and Wendy Tepperman, and was supervised by Sheldon L. Pollock of the SEC’s New York Regional Office.