Successful compliance is built upon a solid foundation of risk management. Effective compliance programs begin with a thorough assessment to identify areas of risk within the organization. Developing a risk management framework is crucial to an organization’s ability to develop … Read More
On November 10, 2021 the SEC Division of Examinations (“Division”) issued a Risk Alert outlining deficiencies the Division found during their national exam initiative on advisory fees. The focus of this Risk Alert was supplementary to the Risk Alert on … Read More
The fiduciary standard of care required by investment advisers is well established and is a major component of every client relationship. Investment advisers are tasked with the financial health of their clients and safe keeping of nest eggs built over … Read More
At the beginning of 2021, the Securities and Exchange Commission (“SEC”) released its exam priorities report for the year.[1] In the release, the SEC stated the following: “The Division will continue to review the compliance programs of RIAs, including whether … Read More
For the last several years, the Securities and Exchange Commission (“SEC”) has continually provided guidance and direction with regards to advisers’ fiduciary duty in making recommendations for wrap fee programs. From exam priorities[1] to an investor bulletin[2], the writing has … Read More
Investment professionals registered with one or more states have two basic regulatory challenges: managing differences in securities regulations from one jurisdiction to another and affording the resources needed to remain in compliance with the required regulations. Both challenges can be … Read More
On December 22, 2020, the Securities and Exchange Commission (“SEC”) released the final rule that will govern investment adviser advertisements and payments to solicitors.[1] Deemed by the securities industry as the “New Marketing Rule”, its main purpose is to modernize … Read More
Using technology has become a very integral part of today’s business services, especially in the financial industry. Due to the changes in both state and federal securities regulations over the last few years, the need for financial firms to have … Read More
The Employee Retirement Income Security Act of 1974, as amended (“ERISA”), contains provisions that restrict fiduciaries to retirement plans from engaging in certain activities. These prohibited activities include, among other things, self-dealing, implementing principal transactions,[1] and receiving compensation from third … Read More
Often, when broker-dealers and investment advisory firms are sanctioned by the regulators, the question on everyone’s mind is: where was compliance? While most firms are required to have a designated Chief Compliance Officer (“CCO”), few have more than one compliance … Read More