08 April 2022
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant Background The first quarter is always a busy time for investment advisors. This year, the SEC was busy too, releasing two new proposed rules, Cybersecurity Risk Management and Requirements for Private Fund Advisers . It’s important to remember that a proposed rule can takeRead More »
01 March 2022
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant Background I don’t know about you, but we are hearing and seeing cryptocurrency everywhere. In this article we are tackling the SEC’s Digital Assets Risk Alert from February 2021. While we are experts in the SEC-registered investment advisor space, we are not experts in digitalRead More »
14 February 2022
Main Contributor: Zachary Fenno, CSCP, Compliance Manager Qualified Client Threshold The SEC scrutinizes performance fees heavily, so it is important to stay abreast of new regulations surrounding when advisors can charge performance fees. The Advisor’s Act prohibits registered advisors from charging a performance-based fee unless the client meets the definition of a “Qualified Client.” OriginallyRead More »
08 February 2022
Main Contributor: Gretchen Sturdivan, CSCP Creative Director & Client Service Manager Introduction The Division of Examinations (the “Division”) continues to focus on retail clients in their most recent Risk Alert, which highlights deficiencies around advisory fee billing practices. The deficiencies the Division notes often result in financial harm to the client and do not upholdRead More »
10 January 2022
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM CEO & Lead Consultant Background At this point we have covered The Definition of an Advertisement, where we summarize the amended Marketing Rule’s definitions of an advertisement; specifically the elements covered under Prong 1 and Prong 2 of the definition. We follow this with part two of our series,Read More »
10 December 2021
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM CEO & Lead Consultant Background Before you read the title and stop because you don’t think this applies to you, keep in mind that claiming NOT to engage in the aforementioned practices, is one of the issues the SEC has found in examinations. If it is your policyRead More »
30 September 2021
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM CEO & Lead Consultant Background Did you know the old Advertising Rule NEVER addressed performance advertising and for years advisers relied primarily on the Clover no-action letter, which was drafted in 1986? The addition of requirements around performance advertising in the updated Marketing Rule is a necessary addition,Read More »
02 July 2021
Main Contributor: Gretchen Sturdivan, Creative Director & Client Service Manager Approaching Sustainability The SEC Division of Examinations published a Risk Alert on April 9, 2021, as a result of their exam findings with firms who offer Environmental, Social, Governance (“ESG”) products and services. ESG investing has been an Examination Priority for the SEC for theRead More »
02 June 2021
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant Background This article follows the first in our series, The Definition of an Advertisement, where we summarized the amended Marketing Rule’s definitions of an advertisement; specifically the elements covered under Prong 1 and Prong 2 of the definition. Part Two of our series will focusRead More »
01 March 2021
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant Background The SEC proposed and adopted the new Marketing Rule, (the “Rule”) which will eventually replace the current Advertising Rule (Rule 206(4)-1, originally adopted in 1961) and the Solicitation Rule (Rule 206(4)-3, originally adopted in 1979). The Rule is a complete rewrite of theRead More »
26 January 2021
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant On December 16, 2020 the SEC released a risk alert addressing observations from examinations for adviser’s compliance with Rule 13h-1, also known as the Large Trader Rule.. This article will cover investment advisers’ obligations under Rule 13h-1 and helpful guidance to make it easier.Read More »
05 January 2021
Don’t miss a compliance deadline this year! We have put together a calendar to help you keep track of regulatory filing deadlines for 2021. You might want to bookmark this one and also make sure you are on our deadline reminder list! 2021 SEC Regulatory Deadlines for Investment Advisers The filing deadlines are listedRead More »
17 December 2020
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant Effective February 1, 2021, New York state will require Investment Advisor Representatives (“IARs”) to register with the state via the CRS/IARD system. You can read the updated NY regulation here. Historically, New York has been one of the few states to not require IARsRead More »
30 October 2020
Main Contributor: Gretchen Sturdivan, Creative Director & Client Service Manager On September 15th, the SEC issued a Risk Alert to address a method of cyber-attack that is more sophisticated yet increasingly accessible to attackers: “credential stuffing.” We’re getting close to Thanksgiving, but that’s not the direction the SEC is going. This method of cyber-attackRead More »
19 July 2020
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant On July 10th, the SEC released a proposal to amend reporting requirements of Form 13F to update the reporting threshold which has not been adjusted in over 40 years. What is 13F? Section 13F of the Securities and Exchange Act requires registered investment advisersRead More »
06 July 2020
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant The SEC issued a risk alert on June 23rd that provides a summary of the results the staff discovered when conducting exams of investment advisors that manage private funds. If you are an advisor to private funds (all types including private equity) orRead More »
02 June 2020
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant We have settled into work from home life and found a (somewhat) new normal of work during the pandemic. When the dust settles, we expect the SEC to focus on areas such as business continuity and supervision of employees during the pandemic. WeRead More »
08 May 2020
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant SEC Risk Alert: Form CRS On April 7, 2020, the Office of Compliance Inspections and Examinations (“OCIE”) issued a risk alert to let advisors and broker-dealers know that, regardless of COVID-19, it’s business as usual at the SEC and firms must continue to meetRead More »
25 October 2019
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant Review of Part 1: The Foundation In the first article of this series, we discussed the foundational information you need to know to ensure your marketing and advertising materials are in compliance with the SEC’s rules and regulations. We helped you clearly understand:Read More »
02 July 2019
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant As a reminder, a “Risk Alert” is the SEC’s way of giving you a heads up about patterns of deficiencies during recent examinations. They can help you stay on top of your game. On May 23, 2019, the SEC issued a risk alertRead More »
25 June 2018
The SEC recently updated the Staff Responses to Questions About the Custody Rule (“Custody FAQ”). And this time, it’s a relief! As you probably recall, in February 2017, the SEC said that advisers may have “Inadvertent Custody” due to language that is in the agreement between the custodian and the client, which caused much angstRead More »