Compliant Advertising –  Breaking It Down (Again) Part 1: The Definition  of an Advertisement

Compliant Advertising – Breaking It Down (Again) Part 1: The Definition of an Advertisement

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 »

OCIE Observations: Compliance Programs

OCIE Observations: Compliance Programs

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 »

SEC Risk Alert: Safeguarding Against Credential Compromise

SEC Risk Alert: Safeguarding Against Credential Compromise

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 »

SEC Amendments to the Accredited Investor Definition

SEC Amendments to the Accredited Investor Definition

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 »

Risk Alert: Employee Supervision and Employing Personnel with Disciplinary Events

Risk Alert: Employee Supervision and Employing Personnel with Disciplinary Events

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 »

How to Navigate the SEC’s Best Execution Risk Alert

How to Navigate the SEC’s Best Execution Risk Alert

02 August 2018

“Best execution,” is a subjective target that is difficult to measure, rank, or define.  In general, best execution is the effort of an adviser, to seek best price while also factoring in: expertise, sophistication, speed, and “the full range and quality of a broker-dealer’s services including, among other things, the value of research provided asRead More »

How to Prepare for ADV Part 2A Updates

How to Prepare for ADV Part 2A Updates

07 February 2018

Haven’t looked at your ADV Part 2A in months? Staring at your computer screen, wondering where to start? Check out our ADV Part 2A checklist. Did you have any major changes to your firm’s business in 2017? Make a list! Have you opened or closed any new products or funds in 2017? Do your productsRead More »

ADV Part 1 Changes

ADV Part 1 Changes

07 February 2018

On October 1, 2017, the U.S. Securities and Exchange Commission (“SEC”) amended the ADV Part 1 to obtain more information on registered investment advisers. As the annual amendment date (March 31st, 2018) closes in, we want to summarize important changes and remind you of important practices this filing season. SCS Suggests As you start yourRead More »

Advertising Risk Alert

Advertising Risk Alert

01 October 2017

An adviser’s use of marketing materials continues to be an area of high concern for the SEC, and with good reason. Marketing materials are how you showcase your firm to the world. They’re used to obtain investors, to grow the business, and find new opportunities. And you better believe the SEC is going to reviewRead More »