Compliance Manual Pitfalls
Remember that whispered voice in Field of Dreams. . . “If you build it, he will come?” Well, the SEC has its own version . . . “if you put it in your manual, we will make you prove you … Continued
Recent SEC Examination Request Letter
It is always helpful to see what the SEC is asking for when they start off their examination of an investment adviser:
The Role of the CCO
From a recent speech by the the head of the SEC’s Office of Compliance Inspections and Examinations (now known as the Examinations Division):
Fact Sheet – Investment Adviser Marketing
On Tuesday, Dec. 22, 2020, the Commission announced it had finalized reforms to modernize rules that govern investment adviser advertisements and compensation to solicitors under the Investment Advisers Act of 1940. Neither rule has been amended significantly since its adoption … Continued
Summary of SEC Releases
The past few years have seen quite a bit of regulatory activity. The SEC’s Office of Compliance Inspections and Examination (now known as the “Office of Examinations”) issued nine Risk Alerts in 2020, five in 2019 and five more in … Continued
OCIE Observations: Investment Adviser Compliance Programs
The latest Risk Alert from the SEC discusses investment adviser compliance programs can be found here.
SEC and the Government Shutdown
I just reached out to the SEC with a question about registration and was met with this rather abrupt response:
2019 SEC Examination Priorities
The Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission has released its 2019 examination priorities. You will not be surprised to see that cybersecurity is still on the list. Anti-money laundering will also figure … Continued
DOL Extends Transition Period for Fiduciary Rule Exemptions
The U.S. Department of Labor has announced an 18-month extension from Jan. 1, 2018, to July 1, 2019, of the special Transition Period for the Fiduciary Rule’s Best Interest Contract Exemption and the Principal Transactions Exemption, and of the applicability … Continued
Improving Investment Adviser Compliance
Peter B. Driscoll, Acting Director, Office of Compliance Inspections and Examinations recently gave a speech on improving investment adviser compliance.
What happens to my investments if something happens to you?
If you don’t have the right answer to this question, you are not only risking the growth of your business, but you are also violating your regulatory and fiduciary responsibilities.
Frequently Asked Questions: Investment Adviser Registration
These Frequently Asked Questions are part of a series of frequently asked questions that address four primary areas of interest to investment advisers: Compliance Program Components; Daily Operations; Client Protection; and Registration … Continued
Frequently Asked Questions: Trade Aggregation
These Frequently Asked Questions are part of a series of frequently asked questions that address four primary areas of interest to investment advisers: Compliance Program Components; Daily Operations; Client Protection; and Registration … Continued
SEC Issues Risk Alert About Performance Advertising
In a Risk Alert issued today, the SEC’s Office of Compliance Inspections and Examinations has provided a list of compliance issues relating to Rule 206(4)-1 (the “Advertising Rule”).
For 2 Advisers Cherry Picking Season is Over!
In two separate administrative actions, the SEC barred two state-registered investment adviser for allocating trades in client accounts in a manner that disadvantaged their respective clients. The SEC also fined the heck out of them.
Outsourced CCO Fined $30,000 for ADV Misstatements
The position of chief compliance officer of a registered investment adviser has always carried with it the risk of personal liability. Being an outsourced CCO is even more perilous.
Observations From SEC Cybersecurity Examinations
Cybersecurity is all the rage and appropriately, the SEC recently concluded its second cybersecurity exam initiative of investment advisers, broker-dealers and investment companies.
7 Things Advisers Must Do To Avoid Custody
A recent SEC No-Action Letter (Investment Adviser Association, February 21, 2017) clarified how an investment adviser can avoid having custody as a result of having a standing letter of instruction or other similar asset transfer authorization arrangement established by a client … Continued
3 Ways to Reduce Potential SEC Penalties
One day you might find yourself in a situation where you have discovered – through the normal operation of your compliance policies and procedures or through your compliance testing – that your advisory firm has come up short in some significant manner. … Continued
SEC Cybersecurity Exam Requests
Cybersecurity seems to be all the rage with both SEC and state regulators. However, advisers have been flying blind as to what the regulators may actually request during a cybersecurity exam. Thanks to our contacts in the industry, we were able … Continued