Compliance Solutions for Investment Advisers

Monthly Archives: February 2012

SEC Proposes Rules To Help Prevent And Detect Identity Theft

From the SEC’s alert: Washington, D.C., Feb. 28, 2012 – The Securities and Exchange Commission today announced a rule proposal to help protect investors from identity theft by ensuring that broker-dealers, mutual funds, and other SEC-regulated entities create programs to detect and respond appropriately to red flags. The SEC issued the proposal jointly with the

SEC Releases Risk Alert on Unauthorized Trading

From the SEC’s Risk Alert: Washington, D.C., Feb. 27, 2012 – The Securities and Exchange Commission today released an alert to help firms prevent and detect unauthorized trading in brokerage and advisory accounts. The Risk Alert issued by the agency’s Office of Compliance Inspections and Examinations (OCIE) notes that although broker-dealers and investment advisers are

Protecting Clients from Cybercrime

Important tips for advisers on protecting their clients from cybercrime. http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20120205/REG/302059988

Registration Transition – SEC Backs Off Automatic De-registration

The SEC Final Rule Release that sets forth the increase in assets under management (AUM) threshold for SEC registration clearly states that the SEC is going to automatically deregister on June 28, 2012, any adviser that does not have the requisite AUM when filing their annual amendment. The SEC has backed off of this which

Compliance Alert! Performance Fees

Dear Compliance Professional, Recently the SEC tightened its rule on investment advisory performance fees by raising the net worth requirement for investors who pay performance fees and by excluding the value of the investor’s home from the net worth calculation. This follows on the heels of the SEC excluding the value of an investor’s home

SEC Tightens Rules on Advisory Performance Fee Charges

The Securities and Exchange Commission today announced it is tightening its rule on investment advisory performance fees to raise the net worth requirement for investors who pay performance fees, by excluding the value of the investor’s home from the net worth calculation. Under the SEC’s rule, registered investment advisers may charge clients performance fees if

Customize Those Manuals

At the SEC seminar last week, Rosalind Tyson, director of the SEC’s Los Angeles office, said that firms should design compliance programs tailored to their core business activities and then follow through on them. “For heaven’s sake, don’t adopt policies that you’re not going to implement,” she said. “Make sure you know who should do what

9 Regulatory Issues That Could Affect Your Practice

Regulatory issues impacting advisers: http://www.investmentnews.com/article/20120201/FREE/120129929

New Massachusetts Regulations

The Massachusetts Securities Division recently adopted new regulations related to investment advisers.  The new regulations became effective February 3, 2012.  The rules will generally not be enforced until August 3, 2012.  The changes to the regulations did the following: Discretion (950 CMR 12.205)(5): Changed the minimum financial requirements relating to an adviser with discretion over

Registration Transition Issue

Many states require applicant for state registration to complete an affidavit of “no prior activity.” The choices are typically, no, you have not conducted advisory activities in this state or yes, you have conducted advisory activities in this state. If the answer is yes, they require you to list all clients and fees charges, provide

Massachusetts Data Privacy Act

Please note by March 1, 2012, advisers must ensure their agreements with third-party service providers with which they share personal information meet Massachusetts Data Privacy Act (201 CMR 17) requirements. http://www.mass.gov/ocabr/docs/idtheft/201cmr1700reg.pdf

New Challenges for Family Offices

The bombshell in the Dodd-Frank Act for family offices was the revocation of the “less-than-15-client exemption” for private investment advisers. That rule allowed single-family offices to avoid registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940, and the disclosures and costs that come with it. http://www.investmentnews.com/article/20120129/REG/301299981

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