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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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.
. . . is April 1st this year because March 31st falls on a Sunday.
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 … Continued
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.
A steady stream of features being added to social media such as Facebook, Twitter and LinkedIn will test financial advisers’ ability to comply with securities law and company policy. LinkedIn’s endorsement feature could inadvertently put advisers in violation of regulations … Continued
President Barack Obama has nominated former federal prosecutor Mary Jo White as chairman of the Securities and Exchange Commission. White, who is in private practice, was the first woman to serve as U.S. attorney for the Southern District of New … Continued
The Securities and Exchange Commission today announced the opening of registration for its National Compliance Outreach Program for Broker-Dealers that will take place in Washington D.C. on April 9. The event is sponsored by the SEC’s Office of Compliance Inspections … Continued
So what is cherry-picking? The SEC gives a good description in a recent enforcement case (In the Matter of MiddleCove Capital, LLC and Noah L. Meyers): “Myers executed his cherry-picking scheme by unfairly allocating trades that had appreciated in value … Continued
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.