The SEC has announced adoption of amendments to Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Customer Information. The goal is to protect individuals from harm when their personal information is involded in security incidents. “Over the last 24 years, the nature, scale, and impact of data breaches has transformed substantially. These amendments to […]
Post contributions from Ara Jabrayan On April 17, 2024, the SEC provided Registered Investment Advisers (RIAs) with observations regarding firms’ compliance with the Marketing Rule. According to the announcement from the SEC’s Division of Examinations, the alert details the Division’s initial observations of investment adviser compliance with the following Rules: The Compliance Rule (Advisers Act […]
It’s not just eggs and milk that are getting more expensive. In one of the regulator’s first notices in 2022, SEC penalties will increase due to inflation. The change is based on the difference between the consumer price index from October 2020 to 2021. For penalties levied by the SEC, that change will mean at […]
Tech adoption can be a huge issue for RIA companies, and virtually any business these days. If the pandemic has taught us anything, it’s that most people can quickly adopt new tech. (Online meetings anyone?) Meanwhile, some may initially resist new tech and later grow to love it. And then there’s the handful of people […]
The SEC recently took enforcement actions against three Registered Investment Advisers (RIAs) that breached their fiduciary duty to advisory clients. In particular, the SEC took disciplinary action against RIAs over issues related to 12b-1 fees, revenue sharing arrangements and wrap fee programs. In brief: The SEC found that one of the firms failed to report […]
Bringing on new tech for RIA compliance can be a major undertaking on top of handling the constantly-updated compliance regulations a firm must navigate. Usually any new tech is software of some kind to help make compliance easier to handle. But once you have new tech selected from a vendor, there’s another huge task. The […]
The SEC has been watching wrap fee programs for quite a while. From 2017-19, the SEC’s annual examination priorities named wrap fee programs as putting investors at risk. The SEC’s Division of Examinations (Division) released a July 21, 2021 Risk Alert with guidance from examiners during its Wrap Fee Initiative. The Risk Alert, “Observations from […]
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 […]
Guest post by Ara Jabrayan On December 22, 2020, the SEC enacted the new Marketing Rule, which will have an enormous impact on Registered Investment Advisers (RIAs). The new rule will replace the prior Advertising Rule, as well as the Cash Solicitation Rule. The SEC also amended Form ADV and the Books and Records Rule […]
In this article, Blain Wease, President of Provincial Development Group, and Mac Bartine, CEO of SmartRIA, explore the 5 dimensions of growth and how a culture of compliance can help to support and organize execution of those dimensions. We’ll be exploring these in depth in our upcoming webinar. Growing Your Firm in Any Season The […]
