Compliance Solutions for Investment Advisers

Monthly Archives: December 2011

Registration Transition Info From the SEC

SEC-Registered Investment Advisers: Between January 1, 2012 and March 30, 2012, ALL SEC-registered advisers, and advisers who have an application for registration pending with the SEC, must file a Form ADV amendment (annual updating amendment or other-than-annual amendment), completing ALL items on the revised form (including corresponding sections of Schedules A, B, C and D)

SEC Adopts New Accredited Investor Standard

The SEC finally adopted the long awaited, much-anticipated revised accredited investor standard that requires investors to EXCLUDE the value of their primary residence when calculating their net worth. Investors in private investment funds will have to reach the $1 million net worth level without including the value of their primary residence.

SEC Adopts Net Worth Standard for Accredited Investors Under Dodd-Frank Act

The Securities and Exchange Commission has amended its rules to exclude the value of a person’s home from net worth calculations used to determine whether an individual may invest in certain unregistered securities offerings. The changes were made to conform the SEC’s definition of an “accredited investor” to the requirements of the 2010 Dodd-Frank Wall

FINRA SRO for RIAs Would Cost Double SEC Oversight, Study Says

Four groups representing RIAs conducted a joint study which concluded that creating a new self-regulatory organization operated by FINRA would coast at least twice as much as leaving the responsibility to regulate RIAs with the SEC.

FINRA Entitlement Screw Up

As if things weren’t confusing enough . . . From FINRA: You may have received a test email that was sent in error this morning with the subject line ‘Past Due: FINRA Entitlement User Accounts Certification’. The body of this email read ‘past due text’. Please disregard this email. We apologize for any confusion this

NASAA Coordinated Review Program

The North American Securities Administration Association (“NASAA”) recently announced a Coordinated Review Program (the “Program”) to assist investment advisers with the switch from federal to state registration.  Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, most investment advisers that are currently registered with the U.S. Securities and Exchange Commission (“SEC”) and have less

FINRA Reminds Firms of Their Obligations Regarding the Supervision of Registered Persons Using Senior Designations

FINRA is publishing this Notice to remind firms of their supervisory obligations regarding the use of certifications and designations that imply expertise,certification, training or specialty in advising senior investors (senior designations). This Notice also outlines findings from a survey of firms and highlights sound practices used by firms with respect to senior designations. Firms are encouraged to

Rep. Frank Opposes Self-regulatory Organization for Advisers

According to the article: House Financial Services Committee Chairman Spencer Bachus, R-Ala, “and other Republicans — favor an SRO because they are not convinced the SEC can adequately regulate advisers.  They criticize the SEC for missing Bernard Madoff’s Ponzi scheme, which bilked investors out of $50 billion.  They also point to SEC statistics that show