With 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.

Each week we’re giving you our weekly report highlighting the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to registered investment adviser ("RIA") compliance and regulatory issues. This week's recap focuses on the Securities and Exchange Commissions ("SEC") Regulation Best Interest ("Reg BI") Proposal, the SEC's 2019 regulatory agenda, and RIAs firms attempting to conceal mutual fund share class violations. Check back each week for the latest list of top stories.

Registered 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.

Each week we’re giving you our weekly report highlighting the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to registered investment adviser ("RIA") compliance and regulatory issues. This week's recap focuses on the Securities and Exchange Commissions ("SEC") Regulation Best Interest ("Reg BI") Proposal, increased sophistication around phishing scams, and a year-end action list for advisors. Check back each week for the latest list of top stories.

On 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. 

Each week we’re giving you our weekly report highlighting the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to registered investment adviser ("RIA") compliance and regulatory issues. This week's recap focuses on cybersecurity, the importance of a policy around text messaging, and New Jersey's push for its own fiduciary rule. Check back each week for the latest list of top stories.

Registered 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.

Each week we’re giving you our weekly report highlighting the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to registered investment adviser ("RIA") compliance and regulatory issues. This week's recap focuses on succession planning, changes coming to all 88 local Financial Planning Association ("FPA") entities, and the Securities and Exchange Commission ("SEC") Regulation Best Interest ("Reg BI") proposal. Check back each week for the latest list of top stories.

On November 2, 2018, the Securities and Exchange Commission ("SEC") released its 2018 enforcement report which highlights the 821 enforcement actions pursued during its most recent fiscal year. This latest annual report shows continued focus from the SEC "on the Main Street Investor" and it seems likely that such focus is unlikely to change in the coming years. During the 2018 fiscal year, the SEC filed 490 stand alone enforcement actions, 210 follow-on administrative proceedings, and 121 enforcement actions related to delinquent filings. Stand alone enforcement actions pursued against investment advisers or investment companies totaled 108 which represents a 31.7% annual increase compared to the 82 stand alone enforcement actions filed in the 2017 fiscal year. The SEC Division of Enforcement also notes that it has been forced to operate efficiently as total headcount for the division is down roughly 10% compared to the 2016 fiscal year. As such, the division has "paid careful attention to case selection, attempting to open and pursue investigations that are likely to have the most meaningful impact for investors and the markets." 

Each week we’re giving you our weekly report highlighting the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to registered investment adviser ("RIA") compliance and regulatory issues. This week's recap focuses on how a Democratic House will impact investment advisers, the increase in RIA-related enforcement actions, and the Securities and Exchange Commission ("SEC") Regulation Best Interest ("Reg BI") proposal. Check back each week for the latest list of top stories.