ADMINISTRATIVE PROCEEDING

File No. 3-21646

September 11, 2023 – The Securities and Exchange Commission today announced settled charges against Mortgage Industry Advisory Corporation (MIAC), a New York-based registered investment adviser, for failing to adopt and implement written compliance policies and procedures, conduct an annual review of its compliance program, and establish and enforce a code of ethics.

According to the SEC’s order, MIAC received notice of these deficiencies during an examination by the Commission’s Division of Examinations in 2006, yet it did not adequately address these failures.  The order finds that, while MIAC maintained an employee handbook and internal controls regarding its business operations, those materials did not mention the Advisers Act or the rules adopted thereunder, including the code of ethics requirements of Advisers Act Rule 204A-1.  The order also finds that MIAC only implemented new policies and procedures, began conducting annual compliance reviews, and adopted a written code of ethics in February 2022 after a 2021 examination by the Division of Examinations again noted MIAC’s compliance deficiencies.

The SEC’s order finds that MIAC willfully violated the compliance and code of ethics provisions of Sections 204A and 206(4) of the Advisers Act and Rules 204A-1 and 206(4)-7 thereunder.  Without admitting or denying the findings, MIAC consented to a cease-and-desist order and a censure and agreed to pay to pay a civil penalty of $100,000 to settle the charges.

The SEC’s investigation was conducted by Stephen B. Holden and supervised by Kimberly L. Frederick, Andrew Dean, and Corey Schuster, all of the Division of Enforcement’s Asset Management Unit.  Sharon L. Bryant from the Division of Enforcement’s Complex Financial Instruments Unit, Steven J. Levine from the Division of Examinations, and Jennifer Duggins, Brian Caravello, Jarret Roby, and Michele Foldenauer from the Division of Examinations’ Private Funds Unit assisted with the investigation.