31 August 2021
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM CEO & Lead Consultant This is the third article in our series to breakdown the updated Marketing Rule. If you have not been following us, we highly suggest you start with the first in our series, The Definition of an Advertisement, where we summarized the amended Marketing Rule’s definitionsRead More »
05 August 2021
Main Contributor: Zachary Fenno, CSCP, Compliance Manager Introduction Private fund advisors have unique filing requirements, such as Form D, and Blue Sky Filings. In this article we are going to explain the two filings and the two exemptions commonly used by private fund advisors. Purpose of Form D and Blue Sky The Form D providesRead More »
21 July 2021
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant The one-year anniversary of Form CRS has come and gone, yet there are still questions about delivery requirements and annual updates. First and foremost, there is NO annual update requirement. However, there are a few important triggers with re-filing your Form CRS, as well asRead 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 »
06 April 2021
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant We finally have the 2021 Examination Priorities (“Priorities”) from the SEC, albeit later than previous years. You can read the release here. The Priorities for 2021 are strikingly similar to those of previous years, as noted below: Retail Investors, Including Seniors and Individuals SavingRead 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 »
04 January 2021
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant The SEC Risk Alerts keep coming, this time with exam observations regarding investment advisors’ Compliance Programs. According to OCIE, the most common exam deficiencies arise from issues with Rule 206-4(7), known as “the Compliance Rule.” Rule 206(4)-7 requires investment advisors to have policies andRead 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 »
04 December 2020
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant The SEC has blessed us once again with another Risk Alert. This time, they are providing us with a summary of their findings from a series of focused exams of advisors with branch offices. We intentionally left out the term “branch office” in theRead 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 »
24 September 2020
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant In August of this year, the SEC released an amendment to the “accredited investor” definition. What is an Accredited Investor? Certain qualifications must be met in order to invest in private placements or private funds. One qualification is being an “accredited investor.” An accreditedRead More »
01 September 2020
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant On August 12th the SEC issued a Risk Alert outlining observations from exams and risks in light of the COVID-19 work from home environment. The Commission outlined six (6) areas of concern for firms to review and adjust policies and procedures as necessary,Read More »
04 August 2020
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant On July 10th the SEC issued a risk alert focusing on ransomware and the importance of generating awareness within advisory firms of current threats. The SEC is encouraging registrants to monitor alerts provided by the Department of Homeland Security Cybersecurity and Infrastructure SecurityRead 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 »
23 March 2020
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant It didn’t take long for advisors to start receiving requests from underlying managers, investors and even the SEC on how they were responding to the pandemic. Areas being addressed, include, but are not limited to: A copy of your firm’s Business Continuity PlanRead More »
06 March 2020
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 »
29 January 2020
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant I can’t think of a better way to start off the year than by reading the SEC’s Exam Priorities for 2020. Okay, I’m being a bit facetious. But in all honesty, I do look forward to this publication. It is a great compliance toolRead More »
03 January 2020
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant Have you heard? There is a new form in town. It goes by many names…it is referred to as the Client Relationship Form, Form CRS, or even ADV Part 3. The intent of this new form is to provide your Retail Investors withRead More »
19 December 2019
The purpose of this compliance calendar is to help you keep track of regulatory filing deadlines for 2020. To receive reminders, make sure you join our mailing list! 2020 SEC Regulatory Deadlines for Investment Advisers The filing deadlines are listed below in chronological order, with additional details of RIA form and filing obligations toward the end.Read More »
27 November 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 »
27 November 2019
Main Contributor: Katie Mogan, IACCP® Vice President, Senior Compliance Consultant After years of research, OCIE exam findings, and roundtable discussions, the SEC has issued guidance on proxy voting in the form of a Question and Response (“Q&R”). You can find the Q&R guidance here. The responsibilities of proxy voting can be an administrative burdenRead 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 »
28 August 2019
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant As part of the SEC’s focus on protecting retail investors, in 2017, they examined over 50 RIAs to assess the supervisory practices of advisers who (at the time) currently or previously employed personnel with a history of disciplinary events (the “Supervision Initiative”). NearlyRead More »
22 July 2019
Once again, the SEC has provided insight into exam deficiencies. This time, it’s regarding Reg S-P. Reg S-P requires, among other things, that registered investment advisers: provide customers with a copy of the Firm’s Privacy Notice initially and annually, if there are changes; provide customers with an option to opt out of personal informationRead 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 »
08 May 2019
We wanted to share with you the common themes we’ve observed among the recent industry conferences we attended. Let us know if we can help you with any of these topics. Senior Investors It was discussed that the SEC views senior investors as the most vulnerable investor group and considers it the investment advisers’Read More »
29 April 2019
Main Contributor: Elizabeth Cope, CPA, CSCP, CIPM, CEO & Lead Consultant The topic of Advertising is one of the most challenging areas for CCOs. The challenge begins with the SEC’s definition of “advertisement.” It’s confusing and outdated. The way that the rule is written makes you feel like you have to run through aRead More »
03 April 2019
In all of my experience, working with CCOs as a compliance consultant, the one common sentiment they share is overwhelm. Especially those who wear multiple hats (which is most of the CCOs I work with). If that’s you, you probably ask yourself, “How do I fit all of this in?!” In first quarter,Read More »
01 March 2019
Did you see the SEC’s Risk Alert on Electronic Messaging? We did! And let us start by saying, this Risk Alert was actually really helpful! A lot of times, the SEC issues Risk Alerts that tell you the issues they’re seeing in recent SEC examinations and remind you of your compliance obligations, but theyRead More »
21 February 2019
Each year, the SEC publishes their exam priorities. This provides advisers with transparency in OCIE’s examination program and highlights areas that the SEC believes are of heightened risk. Unlike last year (when OCIE announced a focus on cryptocurrencies) there is nothing brand new this year that we haven’t seen in previous years. It’s kind ofRead More »
04 February 2019
Advisers to the securities listed below are on the SEC’s radar for examination. Do you manage: an index fund that tracks custom-built indexes? a smaller ETF? an ETF with little secondary market trading volume? a fund with higher allocations to certain securitized assets? a fund that underperforms significantly relative to peer groups? a newer mutualRead More »
02 January 2019
The purpose of this compliance calendar is to help you keep track of regulatory filing deadlines for 2019. To receive reminders, make sure you join our mailing list! 2019 SEC Regulatory Deadlines for Investment Advisers The filing deadlines are listed below in chronological order, with additional details of RIA form and filing obligations toward theRead More »
13 December 2018
The focus on retirement accounts and senior investors has been on the SEC’s National Exam Priorities for years. However, it is especially so this year, and as the US population ages and more baby boomers enter retirement, the focus and concern for senior investors will continue to grow. Do you have a direct relationship withRead More »
20 November 2018
On October 31st, the SEC specifically addressed the Cash Solicitation Rule in its risk alert titled, “Halloween Risk Alert.” Well, now we know the SEC has a sense of humor… or is trying to. But in all seriousness, when OCIE issues a risk alert, you should take note. Why…? Because OCIE’s risk alerts are issued asRead More »