In a recent Risk Alert by U.S. Securities and Exchange Commission (“SEC”), the Examination Division identified several common issues among newly registered investment advisers (also referred as RIAs): (1) compliance policies and procedures; (2) disclosures and filings; and (3) marketing. Although these findings are based upon examinations of federally registered investment advisers, it’s our experience that newly state registered firms have similar issues.
Category Archives: SEC
SEC Issues Investment Adviser Exam Priorities for 2023
February 16, 2023
Yesterday, the U.S. Securities and Exchange Commission (“SEC”) proposed amendments to the Form PF, the confidential reporting form for certain SEC registered investment advisers to private funds.
Will Your Investment Adviser’s Use of an Outsourced CCO Survive Regulatory Scrutiny?
January 11, 2022
Although many investment adviser firms desire to outsource the chief compliance officer role to an unaffiliated third-party independent contractor (“Outsourced CCO”), such an arrangement will be scrutinized and could be challenged by the securities regulator as a violation Rule 206(4)-7 or equivalent rule of the state securities regulator depending upon the facts and circumstances.
SEC Raises Qualified Client Threshold
September 08, 2021
The U.S. Securities and Exchange Commission (“SEC”) recently finalized revisions to Rule 205-3 under the Investment Advisers Act of 1940, raising the net worth requirements for individuals who are charged performance fees. The SEC increased the threshold requirements for “qualified clients” to account for inflation, as required by the Dodd-Frank Act and section 205(e) of the Advisers Act. The next adjustment for inflation is anticipated in 2026.
Upcoming Webinar – Compliance Risks of Using Wrap-Fee Program
September 03, 2021
On Thursday, September 30, 2021 at 12:00 PM CST, RIA Compliance Consultants will present a live compliance training webinar about the Compliance Risks of Using Wrap-Fee Program. During this webinar our Senior Compliance Consultants will discuss the Division of Examinations (the “Division”) of the U.S. Securities and Exchange Commission (“SEC”) Wrap-Fee Risk Alert about its assessment of investment adviser firms associated with wrap fee programs.
SEC Charges 21 Investment Adviser Firms for Form ADV Part 3 Filing and Delivery Failures
August 02, 2021
The SEC fines Investment Advisers for failing to deliver and file Form CRS, also known as Form ADV Part 3
On July 26, 2021, the Securities and Exchange Commission (“SEC”) announced that 21 investment advisers agreed to settle charges that they failed to file and deliver their CRS Relationship Summary, also known as Form ADV Part 3, to their retail investors. Click here to read the SEC’s full announcement.
SEC Risk Alert – Wrap Fee Programs
July 26, 2021
SEC Risk Alert on Use of Wrap Fee Accounts by Investment Advisers
On July 21, 2021, the Division of Examinations (the “Division”) of the U.S. Securities and Exchange Commission (“SEC”) released a Risk Alert about its assessment of investment adviser firms associated with wrap fee programs.
The SEC identified multiple areas where the investment advisers examined were deficient in their policies, procedures, and practices related to wrap fee programs, and further noted a range of industry practices that investment advisers might consider adopting to meet their fiduciary duty when recommending and managing wrap fee programs.
New Sample Form – SEC Exam – Privilege Log
May 18, 2021
RIA Compliance Consultants recently created a new sample form, SEC Exam – Privilege Log.
