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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

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Form 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.

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After 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.

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Risk 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.

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Planning 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.

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SEC’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.

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Risk 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.

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FINRA Releases 2021 Report on Risk Monitoring + Examination Activities

February 8, 2021

New and improved format streamlines guidance for compliance professionals.

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DOL’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.

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Risk 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.

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Regulatory 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.

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Regulatory 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.

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Use 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.

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Regulatory 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.

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OCIE 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.

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First 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.

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Best 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.

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SEC 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.

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Multi-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.

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Mock 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.

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Mock 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.

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Liquidity 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.

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Risk 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.

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Who 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.

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How 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.

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SEC 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.

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SEC 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.

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RIAs 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.

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SEC 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.

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Independent 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?

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Tips 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.

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CFTC 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.

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SEC 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

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The 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.

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SEC 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.

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Increased 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.

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Risk 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.

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SEC 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.

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Risk 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.

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COVID-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

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Recent 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.

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Risk 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

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Coronavirus 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

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CARES 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.

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What 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.

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What 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.

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Considering 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.

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Coronavirus Pandemic Creates New Compliance Challenges

March 18, 2020

Working from home can increase the compliance risks facing investment advisory firms.

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Conflicts 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.

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SEC 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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