A Registered Investment Adviser’s (RIA) and its Investment Adviser Representatives’ (IARs) obligations as fiduciaries are quite extensive. Even seasoned Investment Advisers may not fully understand their fiduciary obligations. Fiduciary duty encompasses much more than just the duty to be honest and avoid negligence. Advisers also owe an affirmative duty of loyalty, which means RIAs and […]
On March 3, 2021, the SEC’s Division of Examinations (Division) published its examination priorities for the year. These priorities are the driving force behind the Division’s examinations but are not exhaustive. Examiners may focus on other issues during an examination. The Division, which was previously called the Office of Compliance Inspections and Examinations, circulates its […]
An upcoming audit often causes sleepless nights for even the most capable professionals. With an increase of SEC exams, it’s not a question of if your firm will be audited but when. Be proactive and start to prepare now to feel confident that you’re fully ready for your next exam. The Audit Process Usually, firms […]
Being a registered investment advisor isn’t easy. You may have chosen this profession because you have great business and investment sense, a drive to help others manage their wealth, and a desire to build a solid financial foundation of your own. But working in this industry also requires strict adherence to a slew of complex […]
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 […]
Registered investment advisors must have someone in place to manage RIA compliance with SEC and state regulations, a position commonly known as the chief compliance officer. It’s a vital role, and finding the right fit for CCO could be the deciding factor that makes or breaks a firm.
The Financial Industry Regulatory Authority, also known as FINRA, is not a governmental body like the SEC or state RIA regulators, but it still plays a major role in how RIA firms are run and overseen. FINRA is a private, non-profit, self-regulatory organization for broker-dealers. It operates on appointment by the SEC and can levy […]
It’s inevitable: your RIA firm will be audited. The SEC and state regulators have been steadily increasing the number of RIA audits each year, and if your firm hasn’t been visited yet, it’s only a matter of time. And whether it’s your firm’s first RIA audit or not, you need to be prepared.
