Three advisory firms have been sanctioned by the SEC for violating the custody rule that requires them to meet certain standards when maintaining custody of their clients’ funds or securities.

New York-based Further Lane Asset Management; GW & Wade, a Focus Financial Partners firm in Massachusetts; and Minneapolis-based Knelman Asset Management Group all failed to maintain client assets with a qualified custodian or hire an independent public accountant to conduct surprise exams, according to the SEC. The firms also committed other violations of federal securities laws, the SEC added. Each firm agreed to settle the charges.

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