Investment adviser marketing materials and advertisements are regulated by Rule 206(4)-1 of the Investment Advisers Act of 1940 (“Investment Advisers Act”) and similar state regulations. Under Rule 206(4)-1, an SEC registered investment adviser’s website is considered a form of advertisement under the following circumstances:
Category Archives: Compliance Program
Under the anti-fraud provision of the Investment Advisers Act of 1940 (“Investment Advisers Act”) investment advisors registered with the U.S. Securities and Exchange Commission (“SEC”) must comply with the provision’s requirements concerning advertising and marketing materials. In efforts to prevent fraudulent, deceptive, or manipulative acts, your registered investment advisor should have in place strong supervisory and compliance policies and procedures designed to approve and monitor advertising and marketing materials. Federally registered investment advisors are routinely cited examination deficiencies for issuing non-compliant advertising materials. Much less, investment advisor firms have been cited for simply not establishing reasonably designed compliance policies and procedures for the creation, review and approval of advertising materials.
Complimentary Sample Advertising/Marketing Review Form
April 18, 2012
Receive a complimentary sample Advertising/Marketing Review Form by clicking the “Like” button on our Facebook page.
Complimentary Books and Records Documentation List
March 30, 2012
RIA Compliance Consultants encourages you to view our firm’s Facebook page to receive your complimentary sample Books and Records Documentation List. Our sample Books and Records Documentation List can serve as a log and a checklist to help your investment advisor make sure that it is properly maintaining required books and records. It can also be used as an internal auditing tool to help with proper storage of important documentation. Investment advisors may be overwhelmed by the amount of information and number of documents that must be maintained to meet the minimum books and records requirements; RIA Compliance Consultants encourages your investment advisor to utilize this Books and Records Documentation List to foster increased organization and proper storing practices.
An Investment Advisor Should Test Periodically Whether It Is Maintaining the Required Books & Records
March 29, 2012
A registered investment advisor is required to make and keep true, accurate and current certain books and records relating to its investment advisory business. For investment advisors registered with the U.S. Securities and Exchange Commission (SEC), these required books and records are outlined in Rule 204-2 of the Investment Advisers Act of 1940 (“Advisers Act”). Each investment advisor registered with the SEC should familiarize itself with the requirements of this rule in relation to the documents and reports that need to be maintained, where and for how long the documents must be maintained, and how the documents may be maintained. Most books and records requirements for state registered investment advisors are the same as or similar to the SEC requirements, but each investment advisor needs to make sure that it familiarizes itself with the requirements of the appropriate governing authority.
Guidance for Advertising and Marketing
March 07, 2012
Advertising by investment advisors can generate significant risk exposure depending upon the advertising materials and circumstances.
Massachusetts Releases Social Media Guidance
March 02, 2012
The Massachusetts Securities Division recently released a report providing guidance on social media use by investment advisers. As we wrote earlier, the Massachusetts Securities Division has been investigating social media use by investment advisers. This investigation has resulted in the Massachusetts Securities Division issuing this report to provide guidance on the most common issues identified during their investigation.
Compliance and Ethics Are Not Solely the Responsibility of an Investment Adviser’s CCO
February 08, 2012
On January 31, 2012, the U.S. Securities and Exchange Commission (“SEC”) held a Compliance Outreach Program National Seminar in Washington, D.C. for investment advisers and investment companies. In the past, these seminars were generally referred to as “CCO Outreach Programs.” During the introductory remarks for the seminar, Carlo V. di Florio, Director, Office of Compliance Inspections and Examinations for the SEC, explained the reason for the changed program title. Mr. di Florio indicated that the change is based on the SEC’s desire through both its outreach programs and its examination program to “elevate the role of compliance by underscoring that it is not a responsibility that stops at the desk of the CCO” and that the SEC’s intention is to continue its outreach and support for investment adviser’s chief compliance officers (“CCO”).
Investment Advisers May Be Required to Implement Anti-Money Laundering Policies and Procedures
December 05, 2011
Registered investment adviser may soon be required to monitor client accounts for money laundering activities. James Freis, the director of the U.S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”), recently announced that FinCEN and the U.S. Securities and Exchange Commission (“SEC”) are working together to finalize anti-money laundering regulations that would apply to investment advisers. The proposed rule would likely require investment advisers to implement anti-money laundering policies and procedures and would also require them to report suspicious activity to the appropriate authorities.
The Benefits of Implementing a Compliance Calendar
November 29, 2011
For many registered investment advisers, the task of determining ongoing compliance requirements can seem overwhelming. Carrying out an investment adviser’s ongoing compliance duties can be a very manageable process if the investment adviser is aware of its requirements and organizes and assigns responsibilities for the various compliance functions. A compliance calendar can be a valuable tool to assist investment advisers in carrying out their ongoing compliance duties throughout the year. Developing a compliance calendar can help strengthen an investment adviser’s compliance program that must be developed to detect, prevent, and correct possible regulatory violations that can occur throughout the year.
