Latest Insights Blog

  By Les Abromovitz, Senior Director It is not one bit surprising when enforcement cases show up on the SEC’s… Read More

By Jessica Penovich, Senior Director There are many aspects of 2020 that we would love to purge from our memories. … Read More

By Les Abromovitz, Senior Director Though most financial professionals are more interested in the lurid testimony in the Johnny Depp-Amber… Read More

By Jim Nash, Managing Director What’s in a name?  It seems that the U.S. Securities and Exchange Commission (the “SEC”)… Read More

By Ann Keitner, Senior Director Even though the Form ADV Annual Updating Amendment (“AUA”) is in the rearview mirror, advisors must… Read More

For Investment Advisors and Broker-Dealers FINRA 2022 Entitlement User Account Certification Period Announced. Firms that use the Investment Adviser Registration… Read More

By Les Abromovitz, Senior Director When the SEC’s Division of Examinations (“Division”) publishes a Risk Alert, it expects Registered Investment… Read More

By Joe Higgins, Senior Director The ETF space has evolved to offer a lower barrier to entry, enabling certain ETF… Read More

  By Les Abromovitz, Senior Director In the hit series, Ted Lasso, an American football coach becomes the coach of… Read More

By Todd Cipperman The SEC’s Division of Examinations has issued a Risk Alert highlighting advisors’ failures to monitor material nonpublic… Read More

  By Les Abromovitz, Senior Director On March 12, 2022, in South Florida, the computer screen of a seemingly sharp… Read More

For Investment Advisors + Broker-Dealers SEC Announces Annual Examination Priorities for 2022. Continuing a tradition begun a decade ago, the… Read More

  By Les Abromovitz, Senior Director As they attempt to save money on cell phone bills that are larger than… Read More

  There is a nagging debate regarding the status of Family Offices that precedes the introduction of Regulation Best Interest. … Read More

  By Jessica Penovich, Senior Director Regulators have listed the protection of senior investors at the top of their examination… Read More

By Les Abromovitz, Senior Director On March 30, 2022, the SEC’s Division of Examinations (“Division”), formerly known as the Office… Read More

  By Ginny Voos + Stephen Murphy Embedded in our culture is a sense of “Innocent until proven guilty.” Apparently,… Read More

By Jessica Penovich, Senior Director On March 9, 2022, the Securities and Exchange Commission (“SEC”) proposed its second[1] cybersecurity rule… Read More

For Investment Advisors + Broker-Dealers Sweeping Ukraine/Russia Related Sanctions in the U.S. and Abroad. The U.S. announced and continues to… Read More

By Jaqueline Hummel, Managing Director Every year, investment advisors registered with the SEC face the thankless task of reviewing their… Read More

By Daryn Levesque Market makers are broker-dealer firms that provide pricing for ETFs and liquidity in the secondary market. The… Read More

By Les Abromovitz, Senior Director Chief Compliance Officers (“CCOs”) who are concerned about being held liable for compliance mistakes are… Read More

  By Royce Suba   Introduction In 2011, the SEC approved Rule 204(b)-1 requiring that certain registered investment advisors (“Advisors”)… Read More

  By Ginny Voos + Stephen Murphy The 2022 Report on FINRA’s Examination and Risk Monitoring Program was released on… Read More

For Investment Advisors Observations from Examinations of Private Fund Advisors. The SEC’s Division of Examinations (“EXAMS”) continues to focus on… Read More

By Christine Venuti, Director One of the main tools that investors reference when analyzing mutual funds is the fact sheet. Fact… Read More

By Jessica Penovich, Senior Director On February 9, 2022, the U.S. Securities and Exchange Commission requested comments to its first-ever… Read More

By Douglas Kamin, Managing Director Tucked away in the Securities and Exchange Commission’s (“SEC”) new Rule 15c6-2 proposal on February… Read More

By Les Abromovitz, Senior Director On January 13, 2022, the SEC settled an enforcement action brought against a Registered Investment… Read More

  For Investment Advisors and Broker-Dealers Staff Statement Regarding Form CRS Disclosures. The SEC Standards of Conduct Implementation Committee issued… Read More

  By Gabriel Edelman, Managing Director On January 27, 2022, the United States Securities and Exchange Commission (“Commission”) published an… Read More

  By Royce Suba Introduction SEC-registered investment advisors (“Advisors”) manage approximately $18 trillion in private fund assets, an increase of… Read More

By Jennifer DiValerio, Managing Director Amid the ongoing concerns related to the COVID-19 variants, FINRA Rule 3110.17 was amended to… Read More

  By Gabriel Edelman, Managing Director On January 20, 2022, the Board of Governors of the Federal Reserve System (“Federal… Read More

  By Les Abromovitz, Senior Director On January 11, 2022, the SEC instituted public administrative and cease-and-desist proceedings pursuant to… Read More

For Investment Advisors Robo-Advisers Flunk Compliance 101.  The SEC’s Division of Examinations (the “Division”) recently issued a Risk Alert focused… Read More

Investment Advisor Compliance “To Do” List for 2022   Regulatory Deadlines for Investment Advisors Foreside Financial Group compiled a list… Read More

  By Les Abromovitz, Senior Director On December 17, 2021, the SEC’s Standards of Conduct Implementation Committee (“Committee”) published a… Read More

  By Les Abromovitz, Senior Director The New York Times reported on December 5, 2021, that there is a cream… Read More

By Jennifer DiValerio, Managing Director FINRA is amending their rules that govern registration and continuing education and implementing a Maintaining… Read More

For Investment Advisors SEC Withdraws Several No-Action Letters Related to Marketing Rule. On December 22, 2020, the SEC adopted amended… Read More

By Les Abromovitz, Senior Director On November 9, 2021, the SEC’s Division of Examinations published a Risk Alert that summarized… Read More

By Gabriel Edelman, Managing Director Yesterday, former Securities and Exchange Commissioner (SEC) Chair Jay Clayton joined current SEC Chair Gary… Read More

By Jaqueline Hummel, Managing Director Almost a year ago the Department of Labor (DOL) adopted Prohibited Transaction Exemption 2020-02 (“PTE 2020-02”).  PTE… Read More

By Jaqueline Hummel, Managing Director As promised, the Division of Investment Management is withdrawing and modifying 203 no-action letters on… Read More

  Written by Alan Foxman, Managing Director On November 9, 2021, the SEC’s Division of Examinations issued a Risk Alert… Read More

On October 29, 2021, Commissioner Elad L. Roisman spoke to the Los Angeles County Bar Association and discussed the challenges… Read More

A Cybersecurity Reminder from Foreside’s Chief Risk Officer, Samantha Swift As we say goodbye to October, Foreside’s Chief Risk Officer… Read More

  By:  Kelli Haugh   Last December, the Department of Labor (DOL) adopted a prohibited transaction exemption that impacts rollover… Read More

  By: Les Abromovitz When investment advisors and Chief Compliance Officers (“CCOs”) draft policies and procedures, as well as Form… Read More

By: Jennifer DiValerio, Managing Director The financial services industry has seen a tremendous increase in social media as a marketing… Read More

Written by: Jim Chekos The SEC has announced Proposed Amendments to Form N-PX that would enhance the information mutual funds,… Read More

Mississippi Sends IARs Back to School; IARD and CRD Renewal Season Starts; Regulators Provide Tips on Vendor Due Diligence, and… Read More

  By: Curtis Flippen, Senior Director, Foreside Every sector has been significantly impacted by the COVID-19 pandemic, and the private… Read More

Written by:  Les Abromovitz In the Dire Straits song, Money for Nothing, a group of appliance movers express their envy… Read More

By Jaqueline M. Hummel, Managing Director Aside from trading errors, a primary source of gray hair for compliance officers is… Read More

  Written by:  Jennifer DiValerio, Managing Director Outsourcing is not just about cost savings any longer.  Rather, it has become… Read More

SEC Schools Advisors on Best Interest Obligations; “To Do” List for Fixed Income Principal and Cross Trades; Complex Product and… Read More

  Written by:  Les Abromovitz, Senior Director On August 30, 2021, the SEC announced the resolution of enforcement actions against… Read More

Written by:  Les Abromovitz, Senior Director In an article in The New York Times on August 22, 2021, a physician… Read More

  Written by:  Jennifer Hoopes, Senior Managing Director With the regulatory landscape for asset managers likely to change in the… Read More

Written by:  Adrian Ketri, Managing Director   The number of exempt reporting advisors (“ERAs”) continues to rise as the popularity… Read More

  Written by: Meredith Henning, Managing Director Foreside partners with our clients to help deliver compliant marketing communications to institutional… Read More

  New Definition of Qualified Client Takes Effect, FINRA Speaks on Best Execution, Margin Requirements and Private Placements and More… Read More

On 7/21/21, the SEC’s Division published a Risk Alert that discussed the deficiencies found most frequently by examiners.

  Written by Les Abromovitz, Senior Director Although it’s good to share, sharing revenue can cause compliance problems for a… Read More

  Written by Kirsten Beaudoin, Senior Director On July 26, the Securities and Exchange Commission (“SEC”) announced that 21 registered… Read More

On July 21, 2021, the SEC’s Division of Examinations (the “Division”) published a risk alert detailing observations from an examination initiative focused on investment advisors engaged in cross trades and/or principal trades involving fixed income securities (“FIX Initiative”).

DOL Weighs In With Cybersecurity Guidance, FINRA Issues Reminders on Options and Predispute Arbitration Agreements, NASAA Releases Annual State Advisers… Read More

At long last, the SEC has relaxed its prohibition on testimonials in investment advisor advertisements. But before firms start enlisting clients, YouTubers, bloggers, and other social media influencers to promote their services, they need to understand the rules. Predictably, the SEC has imposed disclosures and due diligence obligations on investment advisors using endorsements and testimonials.

Written by: Curtis Flippen, Foreside Investment Advisor Compliance Consulting Practice Background A Small Business Investment Company (“SBIC”) is a privately… Read More

Written by:  Adrian Ketri, Managing Director   This blog is the first in a series of blogs focused on the… Read More

Written by:  Les Abromovitz, Senior Director Through recent enforcement actions and testimony by SEC Chair, Gary Gensler, the Commission has… Read More

Hardin Joins Forces with Foreside Financial Group, New York Proposes CCO Liability Framework, Cybercriminals Pose as Regulators in Flurry of… Read More

Written by:  Daryn Levesque, Associate Director   What are traditional Exchange-Traded Funds (“ETFs”)? In traditional ETF models, the issuer publishes… Read More