From what I have heard it doesn't actually break any rules because of how the SEC has it set up.
That may be true but that won't protect them from the civil lawsuits where they breached the contracts they had with their own clients.
It would be the same thing if any salesmen lied to you about the features of a product and you bought that product based on their misrepresentation. It may not be illegal in some places, but that won't save the company who told their sales team to outright lie to consumers about a products' worth to sell it at an inflated cost.
This is basic consumer protection and in any other sector almost anywhere it would be a crime. The only difference here is this is the financial sector where lobbyists have paid off policy makers to remove those protections so they can lie and steal from their own customers and point to laws they wrote to show they did nothing wrong.