FOR IMMEDIATE RELEASE 99-44 SEC Brings Year 2000 Enforcement Actions Against Eight Investment Advisers For Failing to Make Required Y2K Disclosure Washington, D.C., May 4, 1999 -- The Securities and Exchange Commission today charged eight investment advisers for failing to timely report on their Year 2000 preparedness as required by Commission rules. Two of the advisers settled the charges and six are contesting them. The SEC's rules required investment advisers to file Form ADV-Y2K with the Commission by December 7, 1998. The Commission brought these actions against investment advisers that failed to timely file all or part of this form. Investment advisers that have at least $25 million in assets under management or are advisers to registered investment companies are required to disclose in ADV-Y2K filings the steps they have taken to address Year 2000 problems, including information about their contingency plans. Investment adviser compliance with the filing requirement is crucial to the Commission's efforts to identify Year 2000 problems and review the industry's state of preparedness. Two of the eight investment advisers charged, BSN Gestion De Patrimonios SA SGC of Madrid, Spain, and Asset Timing Corp. of Grosse Pointe, Michigan, agreed to settlement offers, which consist of a cease-and-desist order, a censure and a civil penalty. BSN was ordered to pay a $15,000 civil penalty and Asset was ordered to pay a $5,000 civil penalty. The six investment advisers that are contesting the cease-and-desist and administrative proceeding are: Apodaca Investment Group, Inc. of San Francisco, California; Brower Financial Services, Inc. of Salt Lake City, Utah; Ethical Investments, Inc. of Minneapolis, Minnesota; Ronald Allan McDow of Nashville, Tennessee; Van Cleef Asset Management, Inc. of Beachwood, Ohio; and WWW Advisors, Inc. of Lexington, Kentucky. A hearing will be scheduled to determine whether the Division of Enforcement's allegations are true and whether cease-and-desist orders, civil penalties and other sanctions are appropriate against these respondents. SEC Director of Enforcement Richard H. Walker said, "These actions highlight the importance we put on advisers filing their ADV-Y2K reports -- not only so that we at the Commission can know whether advisers are prepared for Y2K but also so that their clients are armed with full disclosure." -- more -- ADV-Y2K Enforcement News Release May 4, 1999 Page 2 Investment advisers must file an updated Form ADV-Y2K by June 7, 1999. Investors are encouraged to assess the Year 2000 readiness of their investment advisers by reviewing their Form ADV-Y2K on the Commission's web site at . For further information regarding the Commission's actions, contact Sandra J. Harris, Associate Regional Director, Enforcement, Pacific Regional Office at (323) 965- 3962 or Rabia A. Cebeci, Senior Special Counsel, Pacific Regional Office at (323) 965-3853. # # #