Compliance Solutions for Investment Advisers

Monthly Archives: March 2013

More SEC Exam News

Apparently, the SEC is now requesting a quarterly trade blotter rather than yearly trade records.

New SEC Exam Document Request

There appears to be a new section in the “standard” SEC examination request letter. It asks for due diligence procedures used by the advisory firm’s portfolio managers, investment committee or analysts used to select stocks. Then the letter requests specific due diligence files for several public companies.

Changes to Massachusetts IAR Registration?

On March 15, 2013, the Massachusetts Securities Division (the “Division”) filed regulations proposing amendments with respect to investment adviser representative (“IAR”) applications.  If made effective, the IAR application process would change and may affect your firm’s registration process for all future IAR applications filed with our office. Specifically, the proposal would require an applicant, as

SEC Issues Guidance Update on Social Media Filings

The Securities and Exchange Commission has published a guidance update from its staff to clarify the obligations of mutual funds and other investment companies to seek review of materials posted on their social media sites. The guidance from the Division of Investment Management is the first in its “IM Guidance Update” series, which will offer

What the SEC Has to Say About Performance Advertising

The SEC’s National Examination Program (NEP) examination priorities for 2012 lists marketing and performance advertising as a key focus area. Specifically, the NEP release states: “Marketing and performance advertising is an inherently high-risk area due to the highly competitive nature of the investment management industry. Aberrational performance of certain registrants and funds can be an

New SEC Regulation SCI

The SEC has unanimously proposed new rules to require certain key market participants to have comprehensive policies and procedures in place surrounding their technological systems. The SEC’s proposal called Regulation SCI would replace the current voluntary compliance program with enforceable rules designed to better insulate the markets from vulnerabilities posed by systems technology issues. Self-regulatory

Adviser Standards of Conduct

The SEC has recently published a request for data and other information to assist the agency in considering whether to make new rules about the standards of conduct and regulatory obligations for broker-dealers and investment advisers when they provide personalized investment advice about securities to retail customers. “Studies have shown that few investors realize that

SEC Risk Alert – Custody

The alert by the SEC’s Office of Compliance Inspections and Examinations (OCIE) comes after a review of recent examinations where significant deficiencies were identified showed custody-related issues in about one-third of the firms examined. The advisers’ deficiencies included: Failure to recognize that they have custody, such as situations where the adviser serves as trustee, is

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