Registered Investment Advisers (RIAs) owe a duty to supervise persons associated with the firm with respect to activities performed on their behalf. In recent deficiencies letters, RIAs have been criticized for failing to adequately supervise their supervised persons, including, Investment Adviser Representatives (IARs). RIAs must implement written supervisory procedures to govern the conduct of supervised persons. […]
On July 20, 2018, the SEC announced the settlement of charges against a Beverly Hills-based Registered Investment Adviser (RIA) and its majority owner, because the firm improperly refused to refund unearned advisory fees to 63 clients who left the firm. The RIA also made material misstatements in written disclosures to clients regarding the firm’s financial […]
On July 10, 2018, the SEC settled enforcement actions brought against two SEC-Registered Investment Advisers (RIAs), three Investment Adviser Representatives (IARs), and a marketing consultant, for their involvement in violating the Testimonial Rule using social media and the Internet. Rule 206(4)-1(a)(1) under the Investment Advisers Act sets forth what types of advertisements are prohibited. The […]
On July 11, 2018, the Office of Compliance Inspections and Examinations (OCIE) released a risk alert dealing with the most frequent best execution deficiencies identified during investment adviser exams. The risk alert can help Registered Investment Advisers (RIAs) improve their best execution policies and procedures and avoid potential problems during their own examinations. The duty […]
On April 12, 2018, the Office of Compliance Inspections and Examinations (“OCIE”) issued a National Exam Program risk alert in which it outlined the most frequent advisory fee and expense compliance issues identified in deficiency letters sent to SEC-registered investment advisers. To read the full risk alert, click here. The six most frequent areas of concern […]
On April 6, 2018, the SEC ordered three Registered Investment Advisers (RIAs) to pay $12 million to clients harmed by the firms’ breach of their fiduciary obligations. The RIAs had generated millions of dollars in improper fees by selecting higher-cost mutual fund shares for clients, even though less expensive ones were available. In total, the […]
It’s been a disappointing year for those who thought the new administration would quickly roll back regulations and oversight in the financial industry, including state and SEC compliance for Registered Investment Advisors. This time last year, some RIAs were hoping to decrease their compliance budgets and apply those dollars to other efforts. Contrary to expectations, […]
Working as a RIA compliance consultant, you need to account for every step of the process, including new client on-boarding, compliance tasks, document storage, and employee management, to audit preparation. You’ll also encounter last-minute items that constantly get added to your checklist. If you’re not using an RIA software solution that makes your job easier, faster, […]
When you’re an RIA compliance consultant, chances are you’ve got more than one job title. In a small business especially, you might also serve as the company CEO, CCO, accountant, social media administrator, human resources representative, or office manager. To perform any or all of these duties well, you need easy-t0-use tools for RIA compliance […]
In October, the SEC announced several changes to Form ADV, the main reporting document for registered investment advisors (RIAs). One of these changes illustrates just how much social media has permeated the business landscape and how it can affect your company if not managed properly. What you post on social media can have real repercussions […]
