The SEC charged the investment adviser, New Line Capital, LLC, and its owner and managing member with breaching their fiduciary duties and defrauding their advisory clients by making false and misleading fee disclosures and failing to disclose related conflicts of interest. According to the SEC’s complaint, the firm charged investment advisory clients annual advisory fees and hourly fees for its services. The SEC noted that defendants falsely disclosed that they would “take care to assure” that annual advisory fees would not exceed 2% of a client’s assets under management when, in fact, they did not make any efforts to limit advisory fees to 2% and charged numerous advisory clients more than 2%. The SEC further alleged that defendants misleadingly disclosed that the firm “may” offer hourly fee services when, in fact, the firm was providing such services without informing clients about those charges and without disclosing the financial conflicts of interest arising from their charging of hourly fees. This case emphasizes the importance of full and fair disclosure regarding fees charged and the importance of confirming that advisers have policies and procedures to ensure compliance with statements made in Form ADV Part 2, as well as other relevant disclosures.