Compliance Solutions for Investment Advisers

Monthly Archives: November 2011

Recent SEC Proceedings

On Monday, the SEC provided a press release regarding recent administrative and cease-and-desist proceedings against three different firms.  These actions were centered around the validity of the compliance programs of the involved firms, and, in one case, the level of involvement of the Chief Compliance Officer.  The press release is summed up by Robert Kaplan

Renewal Payment Deadline

Just a reminder that the deadline for payment of your firm’s annual renewal fees is December 12th. Don’t wait until the deadline to pay as the IARD system may take up to a week to process payments.

Massachusetts Proposed Regs

On November 2, 2011, the Massachusetts Securities Division proposed new regulations that would 1.) change the requirements for investment advisers with discretion or custody of client funds; 2.) change the definition of “institutional buyer” found in the regulations; and 3.) introduce a private fund exemption for investment advisers to some private funds.  For more information

Annual Entitlement User Accounts Certification Process

The FINRA Entitlement Program provides authorized users a secure means to access participating applications with a single user ID and password. Once an investment adviser (IA) firm completes the entitlement process, it will obtain access to the IARD system in order to register or file as an exempt reporting adviser via this secure system. The

Texas Reaching Out to Transitioning Advisers

The Texas State Securities Board is sending out the following email: “The Registration Division of the Texas State Securities Board is aware that your investment adviser firm may be required to switch from SEC registration to state registration as a result of The Dodd Frank Wall Street Reform and Consumer Protection Act of 2010. We encourage

Private Funds Prepare for Monster ADV Changes

If you manage a private fund, the amount of information you are required to disclose in the new ADV Part 1 has increased tenfold (not sure how much tenfold actually is, but it is a lot). Instead of just listing the private fund on Schedule D, you have about 4 – 5 pages per fund

Excellent Speech by the Head of OCIE

I commend you to read an excellent speech by Carlo di Florio, the Director of the SEC Office of Compliance Inspections and Examinations on the role of compliance and ethics in risk management. Here is the link:

Annual Registration Begins

Today began the annual registration renewal period. I have to say, the people at the IARD system are extremely helpful. Kudos to them.

Annual Renewal Period Starts Monday

Just a reminder that the annual registration renewal period begins on Monday, November 14th. Advisers must log on to their IARD account and obtain their firm’s Preliminary Renewal Statement. Fees must be paid by December 12th. Always best to start the process early.

Limit for Transition to State Registration Set at $110M

Per the June release by the SEC in footnote 18, the SEC has raised the floor of assets under management above which advisers must register with the SEC to $110 million. However, they are permitted to register at $100 million. It is the same buffer as the old $25 million (may register with the SEC)

FINRA Certification Period

Today starts the 30 day FINRA Certification Period for Super Account Administrators. According to the message sent out by FINRA: One of the responsibilities of FINRA Super Account Administrators (SAA) is to ensure that users in their organization who require access to applications in the FINRA Entitlement Program to perform their job responsibilities are properly