Compliance Solutions for Investment Advisers

Category Archives: Client Relations

Treasury Department Proposes AML Regs for Advisers

On August 25, 2015, the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) released proposed anti-money laundering (“AML”) regulations that would require investment advisers registered or required to register with the SEC to have written AML programs meeting certain minimum requirements under the Bank Secrecy Act (the “BSA”). The proposed regulations would require advisers to: (i)

Three Steps in Developing an Effective IPS

The initial questionnaire should accurately identify the client’s circumstances, investment objectives, risk tolerance, and all investment restrictions and preferences. Review of the questionnaire responses is a great time for the advisor to assess the client’s investment sophistication and to provide the client with capital markets education. The draft IPS is the initial IPS version, including

Aggregation of Certain Client Assets in Private Funds

The SEC’s Division of Investment Management said, in a Guidance Update published this week, that it would not object if related investment advisors registered jointly with the SEC and operating a single advisory business aggregate investments made by certain investors for purposes of determining if those investors are “qualified clients.” The question comes up in the context of

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.

BDs Closer to Fiduciary Rule

The Securities and Exchange Commission plans to issue a “concept release,” which will also likely include a request for information, in the first quarter regarding its rule to put brokers under a fiduciary mandate.