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How RIA Firms Can Train Staff to Detect a Phishing Email

Posted by RIA in a Box

Dec 12, 2018 11:36:18 AM

RIA firms email phishing attacksWith increased sophistication around phishing emails, it is more important than ever to make sure your staff is properly trained on how to identify a potential fraudulent phishing email. Even for advanced users, targeted phishing emails are becoming harder to detect. To start, it is important for registered investment adviser ("RIA") firms have a cybersecurity policy in place. However, not only should a proper policy be in place, but It is imperative firms are training all staff on how to identify a phishing email to protect sensitive internal information and client data.

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Topics: RIA Technology, RIA Operations

How MyRIACompliance Software Integrates with Orion

Posted by RIA in a Box

Dec 6, 2018 2:13:45 PM

Orion RIA compliance softwareRegistered investment adviser ("RIA") firms utilizing our MyRIACompliance RIA compliance software platform benefit from our integration with Orion which is one of the leading portfolio management and reporting software providers according to our most recent industry study. The integration allows a joint Orion and RIA in Box MyRIACompliance client to automate compliance and registration requirements to help ensure consistent and accurate registration and Form ADV information is filed.

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Topics: RIA Compliance, RIA Operations, RIA Technology

SEC RIA Regulatory Enforcement Focus: Improper Client Fee Billing

Posted by RIA in a Box

Nov 28, 2018 10:49:18 AM

RIA enforcement actions client fee billingOn November 19, 2018, the Securities and Exchange Commission ("SEC") Division of Enforcement announced that it settled claims with a registered investment adviser ("RIA") firm "that it charged more than 290 client accounts higher advisory fees than those in its fee schedule. According to the SEC release, like many advisory firms in the industry, this RIA firm charged clients advisory fees calculated based on a percentage of the assets under management ("AUM"). The firm's fee schedule included a series of “breakpoints” that reduced advisory fees charged to a client as the total amount of that client's AUM increased. The fee schedule was incorporated and disclosed in the firm's client advisory agreements, distributed as a separate document by client request, and disclosed on the firm's Form ADV Part 2A. The SEC order found that from early 2010 to early 2018, the advisory firm inconsistently applied the advisory fee "breakpoint" discounts. As a result of this issue, the firm "overcharged more than 290 client accounts during that period by assessing approximately $304,000 in excess advisory fees."

This particular enforcement case is relevant to RIA firms of all sizes that charge client advisory fees based on the client's AUM with "breakpoints" that reduce the total advisory fee when the client's AUM increases. 

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Topics: RIA Compliance, RIA Operations

How MyRIACompliance Software Integrates with Morningstar Office Cloud

Posted by RIA in a Box

Nov 20, 2018 8:09:09 AM

RIA in a Box and Morningstar Office Software IntegrationRegistered investment adviser ("RIA") firms utilizing our MyRIACompliance RIA compliance software platform benefit from our integration with Morningstar Office which is the leading portfolio management and reporting software provider according to our most recent industry study. The integration allows a joint Morningstar and RIA in Box MyRIACompliance client to automate compliance and registration requirements to help ensure consistent and accurate registration and Form ADV information is filed.

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Topics: RIA Compliance, RIA Operations, RIA Technology

SEC Risk Alert Flags Most Common RIA Cash Solicitation Issues

Posted by RIA in a Box

Nov 5, 2018 9:15:00 AM

SEC Risk Alert-1On October 31, 2018, the Securities and Exchange Commission ("SEC") Office of Compliance Inspections and Examinations ("OCIE") released a new National Exam Program Risk Alert outlining the most common registered investment adviser ("RIA") compliance issues related to Rule 206(4)-3 (the “Cash Solicitation Rule”). SEC OCIE staff notes an investment adviser required to registered under the Investment Advisers Act of 1940 (the "Advisers Act") "is prohibited from paying a cash fee, directly or indirectly, to any person who solicits clients for the adviser (a “solicitor”) unless the arrangement complies with a number of conditions." In particular, this risk alert provides examples of the most common regulatory compliance deficiencies related to the cash solicitation rule as observed by SEC OCIE staff during recent regulatory examinations.

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Topics: RIA Compliance, RIA Operations

How MyRIACompliance Software Integrates with Redtail CRM

Posted by RIA in a Box

Oct 29, 2018 1:34:47 PM

Redtail RIA CRM complianceRegistered investment adviser ("RIA") firms utilizing our MyRIACompliance RIA compliance software platform benefit from our integration with Redtail which is the leading customer relationship manager ("CRM) software provider to investment advisers. The integration allows a joint Redtail and RIA in Box MyRIACompliance client to view and complete tailored regulatory compliance tasks all within the Redtail CRM calendar system. MyRIACompliance helps to programmatically deliver firm-specific compliance tasks utilizing the firm’s Form ADV and other proprietary data directly into the Redtail CRM system. 

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Topics: RIA Compliance, RIA Operations, RIA Technology

A Recap of the 2018 RIA in a Box Annual Company Gathering

Posted by RIA in a Box

Oct 4, 2018 1:48:56 PM

RIA in a Box company photoLast week, the entire RIA in a Box team gathered in Cleveland, Ohio for our annual company retreat. Each year we try to create an agenda filled with a myriad of team building activities, and this year was no exception. From go-karting to a contest to develop a new MyRIACompliance feature, we had a jam packed 48 hours.

To keep things interesting, this year we added a new twist to the agenda: our inaugural color wars competition. We divided the company into four teams: blue, green, red, and orange. Each team competed as a group against the other teams in a series of events. At RIA in a Box, we strongly encourage our employees to take an active role in local communities and to pursue personal interests outside of the office. As part of this initiative, each team competed to earn dollars which would be donated by RIA in a Box to a charity of their choice. Each team chose the following charities: Blue - St. Jude Children's Research Hospital, Green - Graffiti HeArt, Red - American Cancer Society, and Orange - Smile Train

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Topics: RIA Compliance, RIA Technology, RIA Operations

NASAA Releases Proposed RIA Information Security Model Rule

Posted by RIA in a Box

Sep 27, 2018 10:29:30 AM

NASAA Proposed RIA Cybersecurity RuleOn September 23, 2018, the North American Securities Administrators Association ("NASAA") released a request for public comment regarding a proposed registered investment adviser ("RIA") model rule related to information security and privacy. There are three key elements of the new proposed rule: 1) a requirement to adopt policies and procedures related to information security, 2) a requirement to deliver the firm's privacy policy to clients annually, and 3) including the failure to establish, maintain, and enforce information security policies and procedures to the enumerated list of unethical business practices. Comments on the proposed rule are due on or before November 26, 2018. 

This public comment period is a great opportunity for individual RIA firms to help shape future legislation. This effort allows RIA firms to help steer the industry away from being required to follow a rule they feel is onerous or overly financially burdensome. As RIA compliance consultants, we believe this is an exceptional opportunity for the over 17,000 state-registered investment advisory firms to take an active role in future investment adviser regulation

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Topics: RIA Compliance, RIA Technology, RIA Operations

Number of RIA Firms Grew By 20% while Broker Dealer Firms Declined By 24% from 2008 to 2017

Posted by RIA in a Box

Sep 18, 2018 10:52:26 AM

Number of broker-dealer firms continues to decline each yearRecently, the Financial Industry Regulatory Authority ("FINRA") published its first annual industry snapshot which contains insightful data ranging from the total number of FINRA-registered representatives to the most common types of marketing materials submitted by FINRA-registered broker-dealer ("BD") firms. In addition, the detailed report discloses the total number of broker dealer and registered investment adviser ("RIA") firms from 2008 to the end of 2017. In this blog post, we analyze the total number of firms highlighted in this report combined with other publicly available data on the number of RIA firms registered historically with the Securities and Exchange Commission ("SEC") to understand the relative growth in the number of broker-dealer firms compared to state and SEC-registered RIA firms over the past ten years.

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Topics: RIA Operations, RIA Compliance

Top RIA Risk Tolerance Software: Riskalyze and the rest

Posted by RIA in a Box

Sep 11, 2018 10:27:06 AM


RIA risk assessment software companiesThe findings in this blog post come from our annual survey of over 1,500 registered investment adviser ("RIA") firms that was conducted in the first quarter of 2018. This proprietary RIA in a Box study is paired with publicly accessible data provided by the Securities and Exchange Commission ("SEC"). The goal of our annual study is to understand different options that comprise each firm characteristic, and to determine whether specific characteristics impact he growth, size, or operational efficiency of an RIA firm. In this blog post, we focus on the top risk tolerance and assessment solutions used by RIA firms.

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Topics: RIA Operations, RIA Technology, RIA Compliance

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