DELAWARE -Attorney General Kathy Jennings announced that an investment advisory firm has agreed to pay $12,500 in fines and back registration fees after operating in the state without proper registration.
The Delaware Department of Justice's Investor Protection Unit entered into an Administrative Consent Order with Morningside Asset Management LLC, resolving an investigation into the firm's unregistered investment advisory activity in Delaware.
Investigators determined that Morningside operated in Delaware without the required registration and employed an investment adviser representative who was also not properly registered. Both actions violated the Delaware Securities Act.
“Registration requirements exist for one reason: to protect people,” said Jennings. “Registration is not a mere formality – it ensures oversight, accountability, and fairness in our markets, and when financial professionals bypass registration requirements, we will act to protect the public.”
Under the settlement, Morningside must pay $12,500 in fines and back registration fees, properly register its investment adviser representative and maintain all required registrations and regulatory updates moving forward.
The settlement reinforces Delaware's registration requirements for investment advisory firms and financial professionals operating in the state. Those requirements are designed to provide regulatory oversight and protect investors from unregistered financial advisory activity.
