Regulators are continuing their focus on robo-advisers,[1] and since 2018 the Securities and Exchange Commission (“SEC”) has filed several enforcement actions reflecting violations of various regulations under the Investment Advisers Act of 1940 (“Advisers Act”).[2] The most reoccurring are violations … Read More
As the world of investment compliance continues to evolve and the scope of service needs widen, compliance professionals in the industry are leveraging technology and third-party vendors to meet the demands and expectations of regulators. Partnering with vendors and service … Read More
There are many factors that go along with having a successful compliance program. Achieving executive buy-in is an integral part of building and maintaining a culture of compliance in any firm. Setting a tone at the top creates a clear … Read More
The release of the exam priorities report[1] was later this year than in prior years but appears to be worth the wait. In this year’s report, the Securities and Exchange Commission (“SEC”) outlines, among others, five “significant” areas of focus. … Read More
Today’s securities markets operate in a complex and seemingly instantaneous environment accelerated by the exponential growth of computing power and interconnectivity. This evolving market space has provided enormous opportunities for investors and investment professionals alike. The same can also be … Read More
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