Compliance Solutions for Investment Advisers

Category Archives: Books & Records

3 Most Typical Books & Records Rule Deficiencies

Below are three typical examples of deficiencies or weaknesses with respect to the Books and Records Rule identified by the SEC staff:

Keeping Trade Confirmations

Recently an adviser asked if they still needed to keep trade confirmations since they were retained by their broker-dealer/custodian. I think an adviser must retain them in their books and records for three reasons: 1.  The repository at the BD is the BD’s books and records and not the advisers.  Therefore, the adviser is technically

SEC Hunting Down Performance Outliers

Make sure you can verify your performance numbers and that you maintain all records necessary to substantiate the performance. The SEC is hunting down performance outliers. If you are posting numbers that wildly outperforms a benchmark the SEC will take an interest and will inquire further.

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