On Thursday, September 24 RIA Compliance Consultants will host a webinar, “Compliance Concerns for Private Funds,” at 12:00 PM CT. During this compliance training webinar, RCC’s Senior Vice-President, Jarrod James, will be joined by Dan McMahon of Koley Jessen to discuss the SEC’s recent Risk Alert entitled SEC’s Observations from Examinations of Investment Advisers Managing Private Funds. We will also discuss the key differences between an Exempt Reporting Adviser filing (ERA) for private fund advisers and full registration as an investment adviser along with the private fund information both filing-types must provide on Form ADV.
NASAA Seeks Input on Investment Adviser Representative Continuing Education Program
September 05, 2020
The North American Securities Administrators Association, Inc. (“NASAA”) is currently seeking input from NASAA members (i.e., state and provincial securities regulators) and other industry professionals, including registered investment advisers and their representatives regarding potential content for classes in its proposed investment adviser representative continuing education program. NASAA intends to utilize survey responses for design and implementation of the proposed IAR continuing education program.
2020 Compliance Professional of the Year
September 01, 2020
RIA Compliance Consultants is pleased to 
announce Anthony Woodard as the winner of our 2020 Compliance Professional of the Year! Anthony serves as the Chief Compliance Officer for Prime Capital Investment Advisors, LLC (PCIA). As CCO, his primary objectives are to ensure that PCIA is in compliance with industry regulations, to assess the firm’s exposure to risk, and to create and administer policies that effectively address such risks.
SEC Enforcement Action Against an Investment Adviser Over Limiting Wrap to NTF Funds
August 31, 2020
On July 28, 2020, the United States Securities and Exchange Commission (“SEC”) filed an order instituting an enforcement action/administrative cease-and-desist proceeding against an SEC registered investment adviser firm for allegedly failing to disclose material conflicts of interest related to its mutual fund share class selection practices, receipt of revenue sharing, avoidance of transaction fees, receipt of compensation pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”), and failure to seek best execution.
SEC Issues Cease and Desist Order Against Dual BD/RIA for Revenue Sharing on Money Market Cash Sweep
August 24, 2020
On August 13, 2020 the United States Securities and Exchange Commission (“SEC”) filed an order instituting administrative cease-and-desist proceedings to a dually registered investment adviser firm/introducing broker-dealer firm for allegedly failing to disclose material conflicts of interest related to its mutual fund share class selection practices, receipt of compensation pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”), and money market revenue sharing agreements.
Top 10 Reasons to Attend RIA Compliance Connection 2020
August 11, 2020
Join RIA Compliance Consultants on Wednesday, August 26 and Thursday, August 27 for our RIA Compliance Connection 2020 virtual conference. Don’t miss this opportunity to learn from industry experts, engage with like-minded peers, and connect with the top leaders in the industry all in the name of the best interest of your clients. Need more convincing?
The North American Securities Administrators Association, Inc. (“NASAA”) recently released a white paper detailing the results of a study conducted by its Senior Issues/Diminished Capacity Committee. While many investment adviser firms are increasingly aware of issues related to diminished capacity in clients, NASAA has found that not all registered investment advisers are prepared to identify and address diminished capacity among investment adviser representatives. As part of the study, NASAA surveyed a number of financial institutions and industry professionals including Bryan Hill, President of RIA Compliance Consultants, Inc.
On July 10, 2020, the United States Securities and Exchange Commission (“SEC”) announced proposed amendments to the Form 13F reporting threshold for institutional investment managers. Currently, Section 13F requires institutional investment managers, which includes registered investment advisers, to file a report with the SEC if the institutional investment manager exercises investment discretion over accounts holding certain types of equity securities that have an aggregate fair market value of at least $100 million on the last trading day of any month of any calendar year. The threshold has not been updated since the mid-1970s when the Form 13F was first adopted by the SEC.
Texas State Securities Board – Temporary Office and Work Location Filing Relief Extended
July 27, 2020
The Texas State Securities Board has announced extended relief from certain filing obligations for securities professionals regulated by Texas, including state registered investment advisers and investment adviser representatives. Filers that would otherwise be required to update a filing solely to report a change in the office of employment address of an employee, agent, or representative, or any newly opened temporary branch or office location between March 13, 2020 and September 30, 2020 will not be penalized or sanctioned for not updating a filing to reflect a temporary branch or work location or space-sharing arrangement. When first announced in March 2020, the waiver ended on June 30, 2020.
On June 23, 2020, the Office of Compliance Inspections and Examinations (“OCIE”) of the U.S. Securities and Exchange Commission (“SEC”) released a Risk Alert about its assessment of the compliance practices of SEC registered investment advisers that manage private equity funds or hedge funds (“private fund advisers”). In its Risk Alert, the SEC noted that over 36% of SEC registered investment advisers manage private funds, which represent a significant area of investment for pensions, charities, endowments, and others. Click here to read the SEC’s Risk Alert for Private Funds.
