The looming turn of the calendar offers a good occasion for investment adviser compliance officers to make good on their promises.
A successful compliance program has customized policies and procedures with two elements — due dates and continuing tasks — designed to prevent violations of the Advisers Act. To accomplish this, the policies and procedures must outline the required regulatory filings with definite due dates, as well as describing ongoing tasks or reviews required to satisfy the supervisory element of the program. (more…)
In the past year compliance professionals have been preoccupied with preventing cybercrime, and rightfully so, with recent high-profile cyber attacks and increased regulatory attention. However, the compliance implications of social media in the financial services sector remain an evolving trend as well, with high importance. A recent investment adviser survey offers a glimpse at the state of the current adviser programs while exposing new risks.
The survey , currently in its 10th year, was conducted by the U.S. Investment Adviser Association, ACA Compliance Group and OMAM. The highest percentage of firms surveyed were established firms with 6-25 years in the business and having assets under management ranging between $1-10 billion. (more…)
Now that the Securities and Exchange Commission has formally named cybersecurity as a top exam priority, firms must prepare for the impending scrutiny.
The SEC’s annual list of investment adviser examination priorities for 2015, released January 13th, SEC labeled cybersecurity as a market wide risk. Last year’s exam priorities did not specifically point to cybersecurity, but merely highlighted investment adviser technology as an exam priority. (more…)
It’s never too early to start planning for 2015 regulatory filing deadlines. There are deadlines applicable to all registered investment advisers and some that require a firm to determine applicability, usually based on services offered or types of investments managed by the firm.
For example, all firms will be required to file an annual amendment or determine eligibility when it comes to 13F securities reporting and only advisers to private funds will be required to file a Form PF. Addressing them now will ensure that required filings and the deadlines associated with them will not be missed. (more…)
A recently released survey has exposed a possible compliance gap for many firms that allow their representatives to communicate with clients via text message.
Text messages are books and records that are regulated by Rule 204-2 under the Investment Advisers Act of 1940, which requires the maintenance of multiple adviser records, with communication between clients being one of them. (more…)
A recent cybersecurity roundtable hosted by the Securities and Exchange Commission should act as a call to action for investment advisers, as the threat of cyber attacks is high for all companies and increasing daily, say event panelists.
Investment advisers, whether small or midsize, are not immune from these attacks and now is a good time to recognize the firm’s risks, review available guidance, hone formal policies and procedures, and preparing for an imminent SEC exam module concerning cybersecurity. (more…)
The Securities and Exchange Commission’s guidance update this week on investment adviser use of social media and the applicability of the testimonial rule will help ease uncertainty over using of certain features of social media sites like Yelp, Foursquare, Facebook and LinkedIn.
The guidance, in the form of 9 questions and answers, primarily focused on the use of third-party review sites and whether it would trigger a testimonial violation. The guidance included specific examples opening the door to using Yelp, Foursquare or a similar site that offers a business review feature, granted certain conditions are achieved. (more…)
The end of March is a crucial milestone of the annual compliance program for most registered investment advisers and exempt reporting advisers (ERA’s).
Every registered adviser and ERA must update their Forms ADV Part 1 and 2A within 90 days of its fiscal-year end, and that is March 31, 2014 for advisers whose fiscal year ended December 31. (more…)
Last week, representatives of the Securities and Exchange Commission gave the first of many reports concerning its “presence exam” initiative for conducting initial regulatory exams of private advisers, and reported a lower rate of deficiencies compared with regular exams. The panel highlighted exam findings and staff observations concerning investment conflicts, marketing, valuation and custody.
The Dodd-Frank Act required approximately 1,500 private advisers to register with the SEC in 2012 – resulting in a current population of approximately 4,000 registered private advisers. (more…)
The Securities and Exchange Commission is on track to meet its goal for auditing private advisers that are newly-registered with the SEC under the Dodd-Frank Act , according to the agency’s 2014 examination priorities published this month.
The SEC has made it clear that this initiative remains a priority this year and if a firm has not already been audited, it should prepare by reviewing five focus areas. (more…)