Latest Insights Blog

On March 3, 2021, the SEC’s Division of Examinations (“Division”) announced its 2021 examination priorities.

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.

New and improved format streamlines guidance for compliance professionals.

The final rule issued by the DOL prescribing the obligations of ERISA fiduciaries when selecting investments for ERISA plans became effective 1/12/21.

The SEC recently published a risk alert detailing observations from IAs’ and BDs’ examinations relating to Large Trader Obligations.

Several states adopted measures granting temporary relief to investment advisor registrants affected by the COVID-19 outbreak.

On 12/22/20, the SEC adopted a modernized Marketing Rule, which will govern advertisements by RIAs and payments to solicitors.

On 12/21/2020, the SEC’s new exemptive Rule 18f-4 and related amendments were published in the Federal Register.

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.

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.

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.

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.

The SEC’s OCIE published a risk alert on November 19, 2020, which provided a summary of notable compliance problems identified by examiners.

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.

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.

If there’s anything scarier at Halloween than Jason Voorhees, Michael Myers, Chucky, and Freddy Krueger, it’s the prospect of an SEC examination.

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.

On 9/15/20, the SEC’s OCIE issued a Risk Alert warning financial firms of an increase in “credential stuffing” cyber-attacks.

Sometimes gifts and entertainment may be acceptable and appreciated; however, some may be more problematic and less heartwarming.

With temporary work from home arrangements extended, firms should be thinking about the longer term impact of the pandemic on their compliance programs.

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.

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.

On 7/27/20, the staff Standards of Conduct Implementation Committee issued a statement regarding the new Form CRS disclosures.

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.

Do you know when your mutual fund or ETF’s last independent anti-money laundering (AML) review was conducted?

RFPs and DDQs are a mainstay for conducting business. But, painful as they may be, there are strategies to ease the process.

The CFTC unanimously approved a number of Proposed Amendments, one of which relates to Compliance Requirements for CPOs on Form CPO-PQR.

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

The proliferation of mutual fund share classes placed a large administrative burden on broker-dealers, RIAs and other financial intermediaries.

Regulators have expanded their focus to include not only the perpetrators of insider trading, but also the firms that failed to enforce proper policies.

The outbreak of Covid-19 has not only presented unprecedented global health and socio-economic challenges, but has also created opportunities for fraudulent activity.

This week, the SEC published guidance stating that advisers who have taken a PPP loan should disclose the loan to clients in certain circumstances.

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.

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.

Since the outbreak, security intelligence communities have observed the steady rise in COVID-19 themed scams

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.

On April 7, 2020, the SEC OCIE issued a Risk Alert that provides guidance regarding SEC inspections for compliance with Form CRS

Since the publication of our March 18 blog, there have been several communications issued from the SEC, FINRA, IAA & many other regulatory agencies & experts

FINRA Guidance for member firm broker-dealers, providing temporary relief from certain member requirements in light of the novel coronavirus.

In February 2020, FINRA published Regulatory Notice 20-05 requesting comments to their proposal to enhance continuing education requirements for securities industry professionals.

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.

This pandemic may trigger a nonrecognized subsequent event disclosure as certain funds may incur substantial losses on financial assets measured at fair value.

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

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.

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.

Through our experience researching third-party marketing firms (TPMs), we’ve gathered several pointers for meaningful due diligence.

The SEC OCIE recently issued examination observations (“Release”) connected to cybersecurity and related operational resiliency practices.

On January 7, 2020, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) announced its examination priorities for 2020.

On 12/18/19, the SEC proposed an updated accredited investor definition. Accredited investors are eligible to participate in certain private and limited offerings, which are exempt from the registration requirements imposed by the Securities Act of 1933. According to the SEC, the new definition will increase access to investments.

On December 10, 2019, the SEC’s published proposed amendments to the Advertising and Solicitations Rules of the Investment Advisers Act of 1940 (“Advisers Act”) in the Federal Register.

The SEC’s guidance makes it clear that RIAs are permitted to establish a variety of different proxy voting arrangements with clients.

The financial market is always innovating. 20 years ago, it was the dot com wave with everyone scrambling to ride it or, perhaps, just keep up. More recently, blockchain spawned a myriad of products, the most well-known being Bitcoin-related.

ESG investing focuses on the sustainability and societal impact of companies and investments therein.

NCS Regulatory Compliance, the nation’s leading regulatory compliance consulting firm, is pleased to announce that they have expanded into California and Atlanta.

Even if you are extremely tech savvy, you can become the casualty of a cyberattack. Cybercriminals continue to exploit human vulnerabilities.

The long-anticipated new ETF rule has finally arrived.

The news has made us all keenly aware that computer algorithms have bested humans in numerous arenas from games to more serious tasks like image recognition.

The Commonwealth of Massachusetts passed an amendment to its investment adviser regulations

The SEC’s guidance makes it clear that RIAs are permitted to establish a variety of different proxy voting arrangements with clients.

Foreside provides BD services to more than 275 asset managers chaperoning, legal underwriting, registered representative licensing services, NSCC, marketing material review & various other compliance functions.

Foreside has seen an uptick in the number of interval funds hitting the market. The five areas below outline the basics of these non-traditional closed-end mutual funds.

Every mutual fund, whether it is a proprietary RIC or part of a Series Trust product with multiple advisors, will have a Board of Directors or Trustees (“Board”) that represents and protects the interests of the shareholders of the mutual fund.

Are you marketing to the Multi-Family Office (“MFO”) or Single Family Office (“SFO”) space? Below are some considerations to keep in mind as you focus your distribution strategy on this target market.

There are close to 80,000 CFP professionals nationwide who are required by the CFP Board’s CE policy to complete 30 CE credit hours each reporting period.

Do you have a firm conference strategy? Are you attending conferences with purpose? In today’s world, you can find a specialized event on almost any topic.

Unless you have recently onboarded mutual funds to a major intermediary platform, the acronyms “TF” and “NTF” may not mean much.

The term “fiduciary” has received great attention in investment-services compliance recently. It should not be unexpected

On 9/4/19, the SEC OCIE issued an alert providing an overview of the most common compliance issues related to principal trading and agency cross transactions under Section 206(3) of the Advisers Act.

Rule 206(4)-1 under the Investment Advisers Act, better known as the Advertising Rule, prohibits the use of testimonials in advertisements for RIAs.

A recent alert published on July 31, 2019 from the North American Securities Administrators Association (“NASAA”)

On July 23, 2019, the SEC’s OCIE summarized its findings after examining firms that previously employed or currently employ individuals with a history of disciplinary events.

For more than a year now, Opportunity Zones and their related funds and businesses have been buzzing with media and industry attention.

On 5/23/19, the SEC’s OCIE published a Risk Alert designed to safeguard customer records and information in network storage.

Many small and medium fund sponsors, irrespective of their investment in illiquid securities, have spent the past year or so vetting data vendors, working with service providers and drafting compliance policies in order to comply with the requirements of the SEC’s Rule 22e-4 (the “Liquidity Rule”).

As classes let out for that glorious summer break, it is common for financial services firms to take on students as interns. The experience can be highly rewarding for both the intern and the employer; however, there are some compliance considerations to keep in mind as you welcome your summer help into the office.