Monex Asset Management, Inc.

Allegations: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASEAND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED AGAINST MONEX ASSET MANAGEMENT, INC. ("MONEX" OR "RESPONDENT"). IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, RESPONDENT SUBMITTED AN OFFER OF SETTLEMENT (THE "OFFER") WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. THE COMMISSION FINDS THAT THIS MATTER INVOLVES FAILURES BY MONEX, A REGISTERED INVESTMENT ADVISER, TO COMPLY WITH AMENDMENTS TO ADVISERS ACT RULE 206(4)-1 THAT THE COMMISSION ADOPTED IN DECEMBER 2020 (THE "AMENDED MARKETING RULE"). FROM NOVEMBER 4, 2022, THE COMPLIANCE DEADLINE FOR THE AMENDED MARKETING RULE, THROUGH JUNE 8, 2023 (THE "RELEVANT PERIOD"), MONEX ADVERTISED HYPOTHETICAL PERFORMANCE ON ITS PUBLIC WEBSITE WITHOUT ADOPTING AND IMPLEMENTING POLICIES AND PROCEDURES REASONABLY DESIGNED TO ENSURE THAT THE HYPOTHETICAL PERFORMANCE WAS RELEVANT TO THE LIKELY FINANCIAL SITUATION AND INVESTMENT OBJECTIVES OF THE INTENDED AUDIENCE. AS A RESULT OF ITS CONDUCT, MONEX WILLFULLY VIOLATED SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-1(D) THEREUNDER. Status: Final Sanction Detail: THE FIRM IS ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-1 THEREUNDER, IS CENSURED, SHALL COMPLY WITH THE UNDERTAKINGS ENUMERATED IN THE ORDER, AND SHALL PAY A CIVIL MONEY PENALTY OF $30,000. Summary: BASED ON A VIOLATION OF SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-1 (MARKETING RULE), THE FIRM WAS CENSURED, REQUIRED TO PAY A CIVIL MONEY PENALTY OF $30,000 AND COMPLY WITH CERTAIN UNDERTAKINGS AND ORDRED TO CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF THE MARKETING RULE.