Starting Monday, November 16, 2020, a registered investment adviser firm can access, via its IARD account, its Preliminary Renewal Statement for 2021 renewals. The Preliminary Renewal Statement must be paid, in full, by Monday, December 14, 2020. Depending on your method of payment, it may take at least two days for a payment to post to the IARD account. Because of this, your firm’s payment should arrive at FINRA no later than Wednesday, December 9, 2020, to ensure that funds are posted to your firm’s IARD account by December 14, 2020.
SEC Roundtable on Regulation Best Interest and Form CRS
November 10, 2020
On October 26, 2020, the United States Securities and Exchange Commission (“SEC”) hosted an online roundtable discussion on Regulation Best Interest and Form CRS, with contributions from senior staff at the SEC and the Financial Industry Regulatory Authority (“FINRA”). Divided into two panels, the online roundtable focused on issues and observations made by SEC and FINRA staff (referred to collectively here as “the staff”) regarding Regulation Best Interest and Form CRS. To view the archived webcast, click here.
SEC Issues Joint Statement on New FAQs Focusing on Disciplinary Disclosures for Form CRS/Form ADV Part 3
November 02, 2020
On October 8, 2020, the United States Securities and Exchange Commission (“SEC”) issued a new joint statement from Chairman Jay Clayton, Dalia Blass, Director of the Division of Investment Management, and Brett Redfearn, Director of the Division of Trading and Markets regarding the Form ADV Part 3. In the statement, the SEC Chairman and Directors discussed the importance for investment adviser and broker dealer firms to clearly and succinctly make required disciplinary disclosures in the Form CRS/Form ADV Part 3. The statement highlighted the publication of several new FAQs for the Form CRS/Form ADV Part 3, which are now available here. To read the SEC’s joint statement, click here.
Failure to Properly Renew Registration May Result in Adverse Consequences for Investment Advisers
October 28, 2020
Investment adviser firms and investment adviser representatives must maintain active registrations and/or notice filing statuses with applicable jurisdictions/states. Unless properly renewed, all investment adviser firm and investment adviser representative licensing approvals expire December 31 each calendar year. To ensure that investment adviser firms and their investment adviser representatives are properly licensed in all necessary jurisdictions for 2021, renewal fees must be paid through the Investment Adviser Registration Depository (“IARD”) system.
Recorded Webinar – Best Practices to Reduce the Risks of Arbitration and Litigation
October 27, 2020
Best Practices to Reduce the Risk of Arbitration and Litigation
Investment Advisers Should Begin Preparations for 2021 Renewals
October 14, 2020
As annual renewal season rapidly approaches, investment advisers should be proactive and begin preparing for renewals by reviewing to make sure the investment adviser is properly registered or notice filed, as applicable, and that its investment adviser representatives are properly licensed with all required state securities regulators. The IARD Renewal Program serves to facilitate the annual renewal of investment advisers and their investment adviser representatives’ registrations with the appropriate state securities regulators. Although, an investment adviser’s registration, notice filing, and licensing requirements are some things that should be reviewed and monitored on an ongoing basis, during the annual renewal process all investment advisers should review their existing registration or notice filing status and each investment adviser representative’s licensing status to confirm that the investment adviser and its representatives are properly registered, notice filed, or licensed (as applicable). Additionally, all state registered investment advisers should also review the state requirements to see if branch office registration is required and, if it is, investment advisers should confirm that all branch office locations have been properly registered.
SEC Charges Investment Adviser Rep with Cherry Picking Profitable Trades for Personal Account
October 12, 2020
On September 28, 2020, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint against an investment adviser representative located in Nebraska for allegedly cherry picking profitable trades for his personal investment account, while disproportionately assigning unprofitable trades to investment advisory client accounts. During the alleged scheme, which ran from January 2017 to March 2018, the SEC asserts that the investment adviser representative earned a 4.4% return on his personal investment account while his disfavored clients earned a negative 12.56% return. Click here to read the SEC’s complaint.
SEC Reschedules its Compliance Outreach Program’s National Seminar
October 08, 2020
On Wednesday, October 7, 2020, the Securities and Exchange Commission (SEC) announced it has rescheduled its compliance outreach program’s national seminar for investment advisers to Nov. 19, 2020. The SEC intends for its compliance outreach program to help Chief Compliance Officers (CCOs) and compliance personnel enhance their compliance programs for the protection of investors. The November 19 program will be offered as a live webcast.
On Thursday, October 22, 2020 at 12:00 PM CDT, RIA Compliance Consultants, Inc. will host a compliance training webinar entitled, “Best Practices to Reduce the Risk of Arbitration and Litigation.” RCC is excited to have representatives from Unitifi and Lockton Affinity serve as panelists on this webinar. Patrick Griffin, an attorney from Kutak Rock, will also serve as a panelist during this discussion.
Investment Advisers Disclosing Disciplinary Events on Form ADV Part 3
September 22, 2020
Intended to be a concise and easily understandable disclosure for retail investors, the United States Securities and Exchange Commission (“SEC”) implemented the Form CRS/Form ADV Part 3 relationship summary to help SEC registered investment advisers provide information to their retail investor clients about the relationships and services the investment adviser firm offers, fees and costs that retail investors will pay, specified conflicts of interest and standards of conduct, and disciplinary history. To learn more about the SEC’s requirements of Form CRS/Form ADV Part 3, please see our website page at https://www.ria-compliance-consultants.com/form-adv-part-3-faqs/ .
