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Quelle Surprise! Enforcement Cases Reflect SEC’s Priorities

June 7, 2022

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

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SEC Reminds Advisors of Marketing Rule Compliance Deadline

June 6, 2022

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

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SEC Chair’s Testimony Gives Firms Insight on Commission’s Priorities and Direction

May 31, 2022

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

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What’s in a Name?

May 27, 2022

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

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Reviewing the Form ADV

May 24, 2022

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

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Regulatory Update – May, 2022

May 19, 2022

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

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RIA’s Response to MNPI Risk Alert Is Exactly What the SEC Expects to Happen

May 17, 2022

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

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A Primer in Launching an ETF under a Turn-Key Structure

May 10, 2022

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

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The SEC Isn’t a Goldfish; Examiners Will Remember Your Compliance Problems

May 3, 2022

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

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Risk Alert: SEC Cites Advisors for Failing to Protect MNPI and Enforce Codes of Ethics

April 28, 2022

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

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Where’s a Trusted Contact When You Need One?

April 26, 2022

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

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Regulatory Update – April

April 19, 2022

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

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Bungled Family Account Aggregation Can Cause Compliance Aggravation for RIAs

April 19, 2022

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

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Family Offices: Both Fish and Fowl?

April 11, 2022

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

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Protecting Seniors and Vulnerable Adults Against Financial Exploitation

April 5, 2022

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

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SEC’s 2022 Priorities Focus on Emerging and Perennial Risk Areas

April 1, 2022

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

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FINRA Rule 4111 – Knock-out Blow from FINRA?

March 29, 2022

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

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SEC Proposes New Cybersecurity Rule Impacting Public Company Disclosures

March 22, 2022

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

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Regulatory Update – March

March 16, 2022

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

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Top Tips for Updating Your Compliance Program in 2022

March 15, 2022

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

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Market Makers – What You Should Know

March 7, 2022

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

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NSCP Firm and CCO Liability Framework Can Ease CCOs’ Liability Concerns

March 1, 2022

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

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Proposed Amendments to Form PF

February 22, 2022

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

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Foreside’s Readers Guide on FINRA’s 2022 Report on Examinations + Risk Monitoring Programs

February 17, 2022

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

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Regulatory Update – Mid-February

February 16, 2022

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

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5 Tips to Maximize the Effectiveness of a Mutual Fund Fact Sheet

February 15, 2022

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

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SEC Proposes Rules to Enhance Cybersecurity Programs

February 11, 2022

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

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SEC Proposes RIA Books and Records Amendment as Part of Trade Date Amendment

February 11, 2022

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

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Hypothetical Performance Advertisements May Create Real Compliance Problems

February 8, 2022

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

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REGULATORY UPDATE: February 2022

February 4, 2022

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

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SEC Approves Blockchain-Based Exchange

February 3, 2022

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

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Risk Alert: Observations from Examinations of Private Fund Advisors

February 1, 2022

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

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FINRA extends relief for onsite office inspections through 2022

January 25, 2022

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

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Federal Reserve Board Publishes CBDC Discussion Paper

January 21, 2022

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

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Hedge Clauses in Advisory Contracts Expose RIAs to Problems with the SEC

January 18, 2022

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

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REGULATORY UPDATE: January 2022

January 11, 2022

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

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Investment Advisor Compliance “To Do” List for 2022

January 10, 2022

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

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Firms Need to Shape Up their Relationship Summaries in the New Year

January 4, 2022

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

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Cream Cheese Shortage Is No Excuse for Skipping Compliance Meetings

December 28, 2021

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

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FINRA seeks to lessen the burden (and urgency) to return to the Financial Service Industry

December 14, 2021

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

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REGULATORY UPDATE: December 2021

December 7, 2021

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

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Traditional RIAs Can Learn from Robo-Advisors’ Advertising Mistakes

December 7, 2021

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

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Current and Former SEC Chairs Discuss Blockchain and Crypto Assets

December 2, 2021

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

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What Advisors Should Know About Giving Rollover Advice After January 31, 2022

November 30, 2021

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

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SEC Pulls Years of No-Action Letters Replaced by Marketing Rule

November 16, 2021

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

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Risk Alerts: SEC Again Finds Litany of Failures in RIA Fee Calculations, Puts Robo Advisors on Alert to Pay Attention to Compliance

November 11, 2021

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

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SEC Commissioner’s Speech Reinforces RIAs’ Cybersecurity Obligations

November 9, 2021

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

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REGULATORY UPDATE: November 2021

November 4, 2021

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

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DOL Delays Enforcement of “Rollover” Rule

October 26, 2021

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

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Choose Your Words Carefully When Drafting Disclosures and Policies and Procedures

October 26, 2021

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

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Social Media Compliance Overview

October 19, 2021

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

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SEC Proposed Amendments to Form N-PX

October 12, 2021

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

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REGULATORY UPDATE: October 2021

October 6, 2021

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

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A look at the next 12 months for private fund compliance

October 5, 2021

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

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Money for Nothing Puts RIA in Dire Straits with the SEC

September 28, 2021

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

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Roll Up Your Sleeves: Advisors Using Performance Advertising Have a Heavy Lift Under New Marketing Rule

September 21, 2021

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

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Know Your Third-Party Vendor

September 14, 2021

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

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REGULATORY UPDATE: September 2021

September 7, 2021

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

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Firms Held Accountable for Email Account Takeovers and Deficient Cybersecurity Procedures

September 7, 2021

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

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Unlike TV and Movies, RIAs Cannot Fix Compliance Problems in Post Production

August 31, 2021

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

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Compliance Executives Outline Top Fund Challenges

August 26, 2021

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

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From ERA to RIA – An Overview of Compliance Requirements (Part 2)

August 24, 2021

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

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Foreside and FINRA Advertising Regulation

August 17, 2021

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

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REGULATORY UPDATE – August 2021

August 16, 2021

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

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Risk Alert: SEC Wraps Up Its Wrap Fee Initiative Examinations and Provides Guidance to RIAs

August 12, 2021

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

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Sharing Revenue Can Give RIAs a Generous Share of Compliance Problems

August 10, 2021

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

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SEC Charges RIAs + Broker-Dealer Firms for Failure to File + Deliver Form CRS

August 6, 2021

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

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Risk Alert: Observations Regarding Fixed Income Principal and Cross Trades

August 5, 2021

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”).

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Regulatory Update – June 2021

July 30, 2021

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

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My Advisor is the GOAT!!! Seven Tips for Using Testimonials and Endorsements under the SEC’s New Marketing Rule

July 27, 2021

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.

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Regulatory and Compliance Intersection of Investment Advisors to Small Business Investment Companies and Private Fund Advisors

July 20, 2021

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

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From ERA to RIA – An Overview of Compliance Requirements

July 12, 2021

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

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Less Than Full Disclosure to Clients + the SEC Leads to More Compliance Problems

July 8, 2021

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

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Regulatory Update – July 2021

July 6, 2021

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

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Active Semi-Transparent Exchange-Traded Funds: Your Questions Answered

June 30, 2021

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

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