Compliance Solutions for Investment Advisers

Monthly Archives: February 2013

Setting SEC Exam Priorities

One of the more interesting aspects of the recent National Exam Program release – Examination Priorities for 2013 – is that the priorities have been set by the SEC staff and not by the SEC itself.  The exam priorities and focus areas for 2013 were selected by, among others, senior exam staff and management. In

Compliance Alert – SEC Exam Priorities

Dear Compliance Professional,   The National Examination Program (NEP) of the SEC’s Office of Compliance Inspections and Examinations recently released its examination priorities for 2013. The NEP release addresses both market-wide priorities and priorities for each of the NEP’s four distinct program areas: (i) investment advisers and investment companies; (ii) broker-dealers; (iii) clearing and transfer

SEC Examination Priorities for 2013

The National Examination program (NEP) of the Office of Compliance Inspections and Examinations (OCIE) published its examination priorities to communicate with investors and registrants about areas that are perceived by the staff to have heightened risk, and to support the SEC’s mission to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation.

Arbitration Clauses

The state of Massachusetts, in a public letter, is calling on the U.S. Securities and Exchange Commission to prohibit Registered Investment Advisers from inserting mandatory arbitration clauses in their contracts, saying such clauses are widespread, not always in the best interest of consumers, and not consistent with a fiduciary practice.

State Privacy Laws & Social Media

An increasing number of states are passing privacy laws that conflict with book and record keeping requirements of SEC-registered investment advisers.  If a social media post is considered advertising, an SEC-registered investment adviser is required to keep a record of that post. However, recent changes to state privacy laws prohibits employers from requesting access to

FINRA Concedes RIAs will Remain Beyond its Purview

After repeated attempts, the Financial Industry Regulatory Authority has conceded that the House Financial Services Committee is not going to expand FINRA’s powers to include oversight of registered investment advisers.

Annual Renewal Deadline

. . . is April 1st this year because March 31st falls on a Sunday.

Overly Helpful?

Has anyone else noticed the increased frequency with which regulators have been communicating with investment advisers? This is occurring on both the federal and state level. While I do applaud their efforts, the indiscriminate nature of the communications tends to lead to more confusion. Take, for example, the recent email from FINRA reminding advisers to

SAA Entitlement Certification

Even though you may get a message from FINRA to the contrary, investment advisory firms with only one registered investment adviser do not have to go through the annual SAA certification process. In fact, you can’t.