Compliance Solutions for Investment Advisers

Monthly Archives: January 2012

Still No Clarity on Supervisory Responsibility

An order by a divided Commission, late Thursday, ended the agency’s controversial action against Theodore Urban, once general counsel of the former Ferris Baker Watts LLC, a Washington, D.C.-based brokerage and investment bank, now part of RBC Wealth Management.  See the article by Reuters.

Fraud Alert Involving E-mail Intrusions to Facilitate Wire Transfers Overseas

20 January 2012 The FBI has observed a trend in which cyber criminals are compromising the e-mail accounts of U.S. individuals and businesses and using variations of the legitimate e-mail addresses associated with the victim accounts to request and authorize overseas transactions. The wire transfers are being sent to the bank accounts of individuals typically

A Great Quote

“Not all compliance failures result in fraud, but many frauds take root in compliance deficiencies,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.

The States Are No Pushovers

For advisers transitioning to state registration, be aware that states, much like the SEC, has enforcement divisions and brings enforcement actions that result in fines. Here is one from Connecticut: Morgan Asset Management, Inc. (IARD # 111715) and Morgan Keegan & Company, Inc. (CRD # 4161) Settle Allegations Relating to Inadequate Disclosure in Fund Sales;

Registration Transition – Colorado

The Colorado division of securities has posted a very helpful power point presentation on its website. It can be found here: In addition, Colorado is one of those states that has waived the registration fee for firms that are currently notice filed. Way to go Colorado!

Registration Transition News – Fee Waivers

At least a little bit of good news for transitioning advisers . . . The following states have waived registration fees for transitioning advisers that are currently notice filed in the state: Alabama, Arkansas, Colorado, DC, Georgia, Idaho, Illinois, Iowa, Kentucky, Maryland, Michigan, Massachusetts, Minnesota, Mississippi, New Hampshire, New Jersey, New Mexico, Oregon, Puerto Rico, Rhode Island, Vermont and Washington. Shame on the

Compliance Alert! Social Media

Dear Compliance Professional, Rarely do we see the SEC Office of Compliance Inspections and Examinations issue a National Examination Risk Alert. So when they do, we pay particular attention. Last week, OCIE issued just such a National Examination Risk Alert on Investment Adviser Use of Social Media. The key takeaways from this Risk Alert are:

Happy New Year

Best wishes to all our readers for a Happy and Healthy and Prosperous 2012. Remember to log on to your IARD account on January 3rd to obtain your firm’s Final Renewal Statement. Firm’s may have incurred additional fees between the time they paid their renewal fees and the beginning of the new year. For example,