New Massachusetts Regulations

posted in: Registration & Licensing | 0

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 … Continued

Registration Transition Issue

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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 … Continued

Massachusetts Data Privacy Act

posted in: Privacy & Data Security | 0

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

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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 … Continued

Still No Clarity on Supervisory Responsibility

posted in: Compliance | 0

An order by a divided Commission, late Thursday, ended the agency’s controversial action against Theodore Urban, once general counsel of the former Ferris Baker Watts LLC, a Washington, D.C.-based brokerage and investment bank, now part of RBC Wealth Management.  See … Continued

A Great Quote

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“Not all compliance failures result in fraud, but many frauds take root in compliance deficiencies,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.

The States Are No Pushovers

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For advisers transitioning to state registration, be aware that states, much like the SEC, has enforcement divisions and brings enforcement actions that result in fines. Here is one from Connecticut: Morgan Asset Management, Inc. (IARD # 111715) and Morgan Keegan … Continued

Registration Transition News – Fee Waivers

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At least a little bit of good news for transitioning advisers . . . The following states have waived registration fees for transitioning advisers that are currently notice filed in the state: Alabama, Arkansas, Colorado, DC, Georgia, Idaho, Illinois, Iowa, Kentucky, Maryland, Michigan, Massachusetts, Minnesota, Mississippi, New Hampshire, … Continued

Compliance Alert! Social Media

posted in: Advertising & Marketing, Alert! | 0

Dear Compliance Professional, Rarely do we see the SEC Office of Compliance Inspections and Examinations issue a National Examination Risk Alert. So when they do, we pay particular attention. Last week, OCIE issued just such a National Examination Risk Alert … Continued

Happy New Year

posted in: Registration & Licensing | 0

Best wishes to all our readers for a Happy and Healthy and Prosperous 2012. Remember to log on to your IARD account on January 3rd to obtain your firm’s Final Renewal Statement. Firm’s may have incurred additional fees between the … Continued

Registration Transition Info From the SEC

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SEC-Registered Investment Advisers: Between January 1, 2012 and March 30, 2012, ALL SEC-registered advisers, and advisers who have an application for registration pending with the SEC, must file a Form ADV amendment (annual updating amendment or other-than-annual amendment), completing ALL … Continued

FINRA Entitlement Screw Up

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As if things weren’t confusing enough . . . From FINRA: You may have received a test email that was sent in error this morning with the subject line ‘Past Due: FINRA Entitlement User Accounts Certification’. The body of this … Continued

NASAA Coordinated Review Program

posted in: Registration & Licensing | 0

The North American Securities Administration Association (“NASAA”) recently announced a Coordinated Review Program (the “Program”) to assist investment advisers with the switch from federal to state registration.  Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, most investment advisers … Continued

FINRA Reminds Firms of Their Obligations Regarding the Supervision of Registered Persons Using Senior Designations

FINRA is publishing this Notice to remind firms of their supervisory obligations regarding the use of certifications and designations that imply expertise,certification, training or specialty in advising senior investors (senior designations). This Notice also outlines findings from a survey of firms and … Continued