SEC Issues Guidance Re: Inadvertent Custody
Maybe there is something wrong with a rule that needs continual guidance? See the latest SEC Investment Management Guidance: Inadvertent Custody: Advisory Contract Versus Custodial Contract Authority
3 Most Typical Books & Records Rule Deficiencies
Below are three typical examples of deficiencies or weaknesses with respect to the Books and Records Rule identified by the SEC staff:
The 4 Most Typical Code of Ethics Violations
As stated in the recent SEC Risk Alert, four typical code of ethics violations identified during examinations of investment advisers include:
Top 3 Custody Deficiencies
As stated in the recent SEC Risk Alert, the 3 most frequent custody issues identified in examinations of investment advisers are as follows:
Top 4 Regulatory Filing Deficiencies
As stated in the recent SEC Risk Alert, the 4 most frequent regulatory filing issues identified in examinations of investment advisers are as follows:
Top 4 Compliance Program Deficiencies
As stated in the recent SEC Risk Alert, the 4 most frequent compliance issues identified in examinations of investment advisers are as follows:
5 Most Frequent Compliance Topics Identified in Investment Adviser Exams
The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) identified the following five areas of compliance deficiencies or weaknesses frequently found during its staff’s examinations of SEC-registered investment advisers:
SEC 2017 Examination Priorities
The SEC’s Office of Compliance Inspections and Examinations has published its examination priorities for 2017. The priorities focus on electronic investment advice, money market funds, and financial exploitation of senior investors. In addition, the priorities “reflect a continuing focus on … Continued
Last Day to File Annual Amendment
Because this year is a Leap Year, the deadline for filing your annual amendment is March 30th and not the usual March 31st. Also, once you are done with your annual amendment filing, you still have one additional “ADV” obligation … Continued
Way to Go CCO Companion!
Congratulations to the team at Digital Compliance and the launch of their very first compliance app – CCO Companion. We are proud to be the sole content provider for all of CCO Companion’s original compliance material. We believe, and from early … Continued
Common Compliance Deficiencies – Weak Internal Controls
With the SEC’s greater emphasis on risk-based exams, SEC examiners’ primary focus is on an adviser’s controls and procedures. As such, they will perform an evaluation of the effectiveness of those controls. Where those controls are found to be weak and ineffective, or … Continued
Common Compliance Deficiencies – Failure to Disclose
An investment adviser has a fiduciary duty to act in the best interests of its clients. A central tenant of this duty is full and fair disclosure of all material facts to clients. What you tell your clients about your … Continued
Social Media – Monitoring
Investment advisers must be able to monitor what their supervised persons are saying about the firm in their social media posts and should be able to monitor what others are saying about the advisory firm.
Social Media – Mobile Devices
Since most social media activity occurs off-site and through mobile phones, advisory firms need to have the capability of applying all their social media policies and procedures to mobile devices.
Social Media – Capture
Advisory firms must be able to capture and archive the posts and tweets of their supervised persons. Firm’s also need to be able to conduct a key word search for problematic terms.
Social Media – Disclaimers
Social media posts are advertising. Any disclaimer that you would typically place on your advisory firm’s web site should also accompany any social media posts. Since the nature of social media is to allow third-parties to post comments, it is … Continued
Social Media – Policies & Procedures
Among top five social media issues for advisers . . . Written Policies & Procedures Advisory firms must develop a written policy and attendant procedures that outlines, at the very least: The types of social media platforms (e.g., Twitter, Linkedin, … Continued
Some Tips for Safeguarding Client Info
Six good safeguarding tips: Shred financial documents and other printed personal material before discarding. Do not leave your laptop computer, iPad, iPhone or Blackberry in your car (or Starbucks) unattended. Do not leave a computer you are logged on to … Continued
Why is the IARD Closed on Weekends?
The entire world puts in some work time over the weekend. Why can’t the IARD system be up and running? For that matter, it should be accessible 24/7. After all, it is a computer system. My computer works round the … Continued
Conduct Compliance Testing
“Forensic testing” is certainly the buzzword in compliance circles. Think CSI: Crime Scene Investigation. Essentially, an adviser should conduct some type of transactional or quality control tests that will assist the adviser in determining whether its activities are consistent with … Continued