9 Regulatory Issues That Could Affect Your Practice
Regulatory issues impacting advisers: http://www.investmentnews.com/article/20120201/FREE/120129929
New Massachusetts Regulations
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
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
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
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
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
Fraud Alert Involving E-mail Intrusions to Facilitate Wire Transfers Overseas
20 January 2012 The FBI has observed a trend in which cyber criminals are compromising the e-mail accounts of U.S. individuals and businesses and using variations of the legitimate e-mail addresses associated with the victim accounts to request and authorize … Continued
A Great Quote
“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
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 – Colorado
The Colorado division of securities has posted a very helpful power point presentation on its website. It can be found here: www.dora.state.co.us/securities/ In addition, Colorado is one of those states that has waived the registration fee for firms that are … Continued
Registration Transition News – Fee Waivers
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
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
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
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
SEC Adopts New Accredited Investor Standard
The SEC finally adopted the long awaited, much-anticipated revised accredited investor standard that requires investors to EXCLUDE the value of their primary residence when calculating their net worth. Investors in private investment funds will have to reach the $1 million … Continued
SEC Adopts Net Worth Standard for Accredited Investors Under Dodd-Frank Act
The Securities and Exchange Commission has amended its rules to exclude the value of a person’s home from net worth calculations used to determine whether an individual may invest in certain unregistered securities offerings. The changes were made to conform … Continued
FINRA SRO for RIAs Would Cost Double SEC Oversight, Study Says
Four groups representing RIAs conducted a joint study which concluded that creating a new self-regulatory organization operated by FINRA would coast at least twice as much as leaving the responsibility to regulate RIAs with the SEC.
FINRA Entitlement Screw Up
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
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