According to the article: House Financial Services Committee Chairman Spencer Bachus, R-Ala, “and other Republicans — favor an SRO because they are not convinced the SEC can adequately regulate advisers. They criticize the SEC for missing Bernard Madoff’s Ponzi scheme, … Continued
On Monday, the SEC provided a press release regarding recent administrative and cease-and-desist proceedings against three different firms. These actions were centered around the validity of the compliance programs of the involved firms, and, in one case, the level of … Continued
Just a reminder that the deadline for payment of your firm’s annual renewal fees is December 12th. Don’t wait until the deadline to pay as the IARD system may take up to a week to process payments.
On November 2, 2011, the Massachusetts Securities Division proposed new regulations that would 1.) change the requirements for investment advisers with discretion or custody of client funds; 2.) change the definition of “institutional buyer” found in the regulations; and 3.) … Continued
The FINRA Entitlement Program provides authorized users a secure means to access participating applications with a single user ID and password. Once an investment adviser (IA) firm completes the entitlement process, it will obtain access to the IARD system in … Continued
The Texas State Securities Board is sending out the following email: “The Registration Division of the Texas State Securities Board is aware that your investment adviser firm may be required to switch from SEC registration to state registration as a … Continued
If you manage a private fund, the amount of information you are required to disclose in the new ADV Part 1 has increased tenfold (not sure how much tenfold actually is, but it is a lot). Instead of just listing … Continued
I commend you to read an excellent speech by Carlo di Florio, the Director of the SEC Office of Compliance Inspections and Examinations on the role of compliance and ethics in risk management. Here is the link: http://www.sec.gov/news/speech/2011/spch101711cvd.htm
Today began the annual registration renewal period. I have to say, the people at the IARD system are extremely helpful. Kudos to them.
Just a reminder that the annual registration renewal period begins on Monday, November 14th. Advisers must log on to their IARD account and obtain their firm’s Preliminary Renewal Statement. Fees must be paid by December 12th. Always best to start … Continued
Per the June release by the SEC in footnote 18, the SEC has raised the floor of assets under management above which advisers must register with the SEC to $110 million. However, they are permitted to register at $100 million. … Continued
Today starts the 30 day FINRA Certification Period for Super Account Administrators. According to the message sent out by FINRA: One of the responsibilities of FINRA Super Account Administrators (SAA) is to ensure that users in their organization who require … Continued
The SEC charged an investment advisor with fraud for lying to clients about how brokerage commission rebates, or “soft dollars,” were being used and producing phony documents to cover up the fraud during an SEC examination. The SEC alleges that … Continued
A proposal to turn over the supervision of financial advisers to a self-regulatory organization (SRO) gained the support of SEC Chairperson Mary Schapiro. The SEC has the resources to conduct annual examinations of only 9% of U.S. registered advisers, who … Continued
The SEC (and the Department of Labor) postponed efforts to extend a fiduciary standard to more financial advisers. “It’s extremely unlikely that there will be a rule this year,” an SEC official says.
Dear Compliance Professional, The protection of a client’s non-public personal information is one of the most important tasks entrusted to an investment adviser. Unfortunately, it is also one of the most vexing issues confronting compliance professionals. Any time an adviser … Continued
Item 5 is the part of the ADV 1 that requests information about an investment adviser’s business, including information about employees, clients and advisory activities. Again, these changes are part of the SEC’s goal to collect more and more information … Continued
Following a recent survey of state-registered investment advisers, the Massachusetts Division of Securities has determined that additional regulatory guidance concerning the use of social media is necessary. The Survey required responses to a variety of questions as to each investment … Continued
The revised Instructions to Item 2 in the ADV Part 1 requires certain “mid-sized” advisers (e.g., those advisers with between $25 million and $100 million in regulatory AUM) to remain registered with the SEC. The Instructions state that a mid-sized … Continued
I spoke with a senior state regulator who told me point blank that the best thing I can tell clients who need to transition from SEC to state registration due to the increased AUM threshold, is start early. She said … Continued
