Marketplace starts the year with the first successful mutual fund to ETF conversion
May 5, 2021
Marketplace starts the year with the first successful mutual fund to ETF conversion
Read MoreForm PF reminders for advisors to private funds and hedge funds
April 27, 2021
Why is Form PF important?
The SEC requires investment advisors that advise more than $150 million in private fund assets to annually file Form PF to facilitate the Financial Stability Oversight Council’s (“FSOC”) monitoring of systemic risk in the private fund industry and to assist FSOC in determining whether and how to deploy its regulatory tools with respect to nonbank financial companies.
Read MoreAfter The Flood
April 19, 2021
Bernie Madoff was arrested on 12/11/08. It is worth taking a moment to reflect on the impact his actions had on the regulation of the financial industry.
Read MoreRisk Alert: The Division of Examinations Review of ESG Investing
April 16, 2021
On April 9, 2021, the SEC Division of Examinations published a Risk Alert regarding its review of ESG investing. As investor demand has increased for investment products and services that incorporate environmental, social, and governance factors (“ESG”), the SEC has increased its focus on advisor practices related to ESG investing.
Read MorePlanning for the CFTC’s Revised Form CPO-PQR for Q1 2021
April 15, 2021
In December 2020, the Commodity Futures Trading Commission’s (“CFTC’s”) Form CPO-PQR was amended to eliminate certain reporting questions and schedules, as well as adopting minor changes to the Form’s layout and guidance sections.
Read MoreSEC’s 2021 Examination Priorities Address Climate and ESG-Related Risks
March 5, 2021
Although the Division has expressed concern about many of these risks before, the 2021 priorities have been influenced by the tumultuous events of the past year. These priorities have also been shaped by the new administration’s concerns regarding climate change and socially responsible investing.
Read MoreRisk Alert: The SEC continues to focus on Digital Asset Securities
March 2, 2021
On 2/26, the SEC’s Division of Examinations published a risk alert detailing observations from examinations related to the offer, sale, and trading of digital assets that are securities.
Read MoreFINRA Releases 2021 Report on Risk Monitoring + Examination Activities
February 8, 2021
New and improved format streamlines guidance for compliance professionals.
Read MoreDOL’s Final Rule on Investment Duties of ERISA Fiduciaries Becomes Effective
January 19, 2021
The final rule issued by the DOL prescribing the obligations of ERISA fiduciaries when selecting investments for ERISA plans became effective 1/12/21.
Read MoreRisk Alert: Does Your Firm Have Large Trader Filing Obligations?
January 14, 2021
The SEC recently published a risk alert detailing observations from IAs’ and BDs’ examinations relating to Large Trader Obligations.
Read MoreRegulatory Update: State Regulators Revisit Temporary Relief for Investment Advisor Registrants Affected by the COVID-19 Pandemic
January 6, 2021
Several states adopted measures granting temporary relief to investment advisor registrants affected by the COVID-19 outbreak.
Read MoreRegulatory Update: SEC Makes Dramatic Changes in Advertising and Solicitor Rules
December 23, 2020
On 12/22/20, the SEC adopted a modernized Marketing Rule, which will govern advertisements by RIAs and payments to solicitors.
Read MoreUse of Derivatives by Registered Investment Companies and Business Development Companies
December 22, 2020
On 12/21/2020, the SEC’s new exemptive Rule 18f-4 and related amendments were published in the Federal Register.
Read MoreRegulatory Update: SEC and State Advisors with NY IARs Must Register Their Representatives in 2021
December 16, 2020
Effective 2/1/21, NY will require IARs to register via Form U4 and meet exam requirements unless they are qualified for an exam waiver.
Read MoreOCIE Director Stresses Importance of CCO Empowerment, Seniority and Authority
December 15, 2020
In his opening remarks, Peter Driscoll, Director of the SEC’s OCIE, gave advice to RIAs that will help them now and in years to come.
Read MoreFirst major guidance on valuation to fund boards since 1970
December 10, 2020
On December 3, 2020, the Securities and Exchange Commission announced the approval of new Rules 2a-5 and 31a-4 under the Investment Company Act of 1940.
Read MoreBest Practices for Remote Office Inspections
December 7, 2020
Given the ongoing uncertainties related to the pandemic, firms have been monitoring regulatory relief bulletins and notices for guidance related to certain compliance obligations, including onsite office inspection requirements.
Read MoreSEC Warns RIAs About Compliance Rule Deficiencies & Weaknesses
November 24, 2020
The SEC’s OCIE published a risk alert on November 19, 2020, which provided a summary of notable compliance problems identified by examiners.
Read MoreMulti-Branch Initiative Offers Advice to RIAs on Compliance and Supervision
November 18, 2020
The SEC’s OCIE published a risk alert on 11/9/20, which discussed supervisory and compliance issues related to RIAs with multiple branch offices.
Read MoreMock Examinations Can Help You Find a Way Out Of Your Compliance Problems
November 17, 2020
A mock examination is akin to a dry run and can help advisors avoid compliance mistakes that might do irreparable harm to the firm and the CCO’s career.
Read MoreMock Examinations Can Make Real Exams Less Scary
October 27, 2020
If there’s anything scarier at Halloween than Jason Voorhees, Michael Myers, Chucky, and Freddy Krueger, it’s the prospect of an SEC examination.
Read MoreLiquidity Risk Management Program
October 6, 2020
An LRMP must be designed to meet the requirements of the Liquidity Rule and the liquidity-related reporting requirements of Rule 30b1-10 and Form N-LIQUID.
Read MoreRisk Alert: Cybersecurity: Safeguarding Client Accounts Against Credential Compromise
September 29, 2020
On 9/15/20, the SEC’s OCIE issued a Risk Alert warning financial firms of an increase in “credential stuffing” cyber-attacks.
Read MoreWho Doesn’t Love A Gift?
September 15, 2020
Sometimes gifts and entertainment may be acceptable and appreciated; however, some may be more problematic and less heartwarming.
Read MoreHow Has The Global Pandemic Impacted Your Compliance Program?
September 3, 2020
With temporary work from home arrangements extended, firms should be thinking about the longer term impact of the pandemic on their compliance programs.
Read MoreSEC Proposes Overhaul to Mutual Funds Disclosure Framework
September 1, 2020
On 8/5/20, the SEC issued a proposed rule and form amendments meant to overhaul the existing disclosure framework for mutual funds and exchange-traded funds.
Read MoreSEC Risk Alert: IA and BD Risks During The COVID-19 Pandemic
August 28, 2020
On 8/12/20, OCIE issued a Risk Alert that addresses several COVID-19-related issues, risks and practices related to SEC- registered IA’s and BD’s.
Read MoreRIAs and Broker-Dealers Should Continue to Review and Refine their Relationship Summaries
August 4, 2020
On 7/27/20, the staff Standards of Conduct Implementation Committee issued a statement regarding the new Form CRS disclosures.
Read MoreSEC Offers Rule 17h Exemptive Relief for Certain Broker-Dealers
July 28, 2020
On 6/29/20 the SEC issued an order granting an exemption from certain requirements of Rule 17h to broker-dealers that were previously subject to the Rule.
Read MoreIndependent AML Review – Lessons Learned
July 21, 2020
Do you know when your mutual fund or ETF’s last independent anti-money laundering (AML) review was conducted?
Read MoreTips For Surviving Those Big Questionnaires
July 14, 2020
RFPs and DDQs are a mainstay for conducting business. But, painful as they may be, there are strategies to ease the process.
Read MoreCFTC Proposes Changes To Form CPO-PQR Reporting Requirements
July 13, 2020
The CFTC unanimously approved a number of Proposed Amendments, one of which relates to Compliance Requirements for CPOs on Form CPO-PQR.
Read MoreSEC Risk Alert Provides Valuable Information to Private Fund Advisors
July 7, 2020
On 6/23/20, the SEC’s OCIE published an overview of compliance issues identified during examinations of RIAs that manage private equity funds or hedge funds
Read MoreThe Ins and Outs of Mutual Fund Profile II
June 30, 2020
The proliferation of mutual fund share classes placed a large administrative burden on broker-dealers, RIAs and other financial intermediaries.
Read MoreSEC Targets Private Equity Advisor for Restricted List Failure
June 29, 2020
Regulators have expanded their focus to include not only the perpetrators of insider trading, but also the firms that failed to enforce proper policies.
Read MoreIncreased Fraud During the Covid-19 Pandemic
June 1, 2020
The outbreak of Covid-19 has not only presented unprecedented global health and socio-economic challenges, but has also created opportunities for fraudulent activity.
Read MoreRisk Alert – SEC Issues Guidance on PPP Loan Disclosure
April 30, 2020
This week, the SEC published guidance stating that advisers who have taken a PPP loan should disclose the loan to clients in certain circumstances.
Read MoreSEC Proposes New Valuation Rule
April 28, 2020
On April 21 the SEC issued proposed Rule 2a-5, raising the prospect of providing the first major guidance on valuation to fund boards since 1970.
Read MoreRisk Alert – Compliance Considerations for CARES Act Loans
April 20, 2020
In response to the COVID-19 pandemic, small business owners are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
Read MoreCOVID-19 Telework Security and Privacy Concerns and Considerations
April 16, 2020
Since the outbreak, security intelligence communities have observed the steady rise in COVID-19 themed scams
Read MoreRecent Observations of Best Practice in the Planning and Execution of Telephonic Board Meetings
April 14, 2020
The SEC offered assurance that the Staff would not recommend enforcement action for violations of certain sections and rules that require a Fund Board to meet in-person.
Read MoreRisk Alert – Form CRS and SEC Examinations
April 13, 2020
On April 7, 2020, the SEC OCIE issued a Risk Alert that provides guidance regarding SEC inspections for compliance with Form CRS
Read MoreCoronavirus Pandemic – Compliance Challenges and Best Practices
April 8, 2020
Since the publication of our March 18 blog, there have been several communications issued from the SEC, FINRA, IAA & many other regulatory agencies & experts
Read MoreCARES Act – FINRA Guidance Issued
April 6, 2020
FINRA Guidance for member firm broker-dealers, providing temporary relief from certain member requirements in light of the novel coronavirus.
Read MoreWhat you Need to Know about FINRA’s CE Proposal
March 31, 2020
In February 2020, FINRA published Regulatory Notice 20-05 requesting comments to their proposal to enhance continuing education requirements for securities industry professionals.
Read MoreWhat Lessons About Business Continuity Plans Will RIAs Learn from the Pandemic?
March 24, 2020
Although it is far too soon to tell how well advisers’ BCPs are performing during the current pandemic, it is an issue that examiners are likely to assess after this is all behind us.
Read MoreConsidering adding a subsequent event footnote to your financial reports in light of the COVID-19 pandemic?
March 20, 2020
This pandemic may trigger a nonrecognized subsequent event disclosure as certain funds may incur substantial losses on financial assets measured at fair value.
Read MoreCoronavirus Pandemic Creates New Compliance Challenges
March 18, 2020
Working from home can increase the compliance risks facing investment advisory firms.
Read MoreConflicts of Interest May Keep Advisors From Rendering Disinterested Advice
March 17, 2020
Recent enforcement actions make it clear how important it is for investment advisors to make full and fair disclosure of all conflicts of interest. Conflicts of interest often cloud advisors’ objectivity, consciously or unconsciously.
Read MoreSEC Eases Compliance for COVID-19 Response
March 11, 2020
The SEC yesterday issued an Order offering registrants impacted by COVID-19 up to 45 days extension relief from certain filing requirements between March 1 – April 30, 2020.
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