U.S. – SEC Fines for 13G Reporting Failure

U.S. – SEC Fines for 13G Reporting Failure

On 20 July 2023, SEC fined Monroe Capital Management failure to file 13G disclosing beneficial ownership .

  • SEC reported that it charged Monroe Capital Management Advisors, LLC for failing to disclose special purpose acquisition company (SPAC)-related conflicts of interest.
  • Failed to disclose SPAC conflicts regarding its personnel’s ownership of SPAC sponsors.


  • Monroe Capital Management Advisors personnel became involved in multiple SPACs whose sponsors were partially owned by Monroe Capital personnel and affiliates.
  • The Monroe Capital Management Advisors personnel were entitled to portion of the compensation sponsors received upon completion of SPACs’ business combinations.
  • Finds that Monroe Capital invested assets of private funds it advised in certain transactions that helped finance SPACs’ business and did not timely disclose conflicts.
  • Failed to timely file amended reports on schedule 13G concerning changes to its and its affiliates’ beneficial ownership of the common stock of a public company.

Violations, Settlement

  • The SEC found that Monroe the antifraud and compliance provisions of Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 (Advisers Act) (15 USC 80b-6).
  • Also Rule 206(4)-7 thereunder (17 CFR 275.2064-7), beneficial ownership reporting provision Section 13(d) (17 CFR 240.13d) of the Securities Exchange Act of 1934.
  • Monroe Capital Management also violated Rule 13d-2 thereunder (17 CFR 240.13d-2).
  • Agreed to cease-and-desist order, a censure, and $1mn civil penalty to settle charges