RIA Compliance and Practice Management Blog

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 benefits of compliance software, the importance of business continuity planning, and how Paycheck Protection Program ("PPP") loans could potentially complicate business for the wealth management industry in the long run.

Earlier this month. the Oklahoma Securities Commission announced they will require Oklahoma-registered investment advisers ("RIAs") to follow the Securities and Exchange Commission's ("SEC") Form CRS filing requirements. According the Oklahoma Securities Commission, "Pursuant to Section 1-406 of the Oklahoma Uniform Securities Act of 2004 ('OUSA') and 660:11-7-11 and 660:11-7-20 of the Rules of the Oklahoma Securities Commission and the Administrator of the Department of Securities ('Rules'), entities registering or registered as investment advisers under the Act must file the Form CRS Relationship Summary as a part of the Form ADV filing requirement. The SEC has mandated that investment advisers registered federally must file before June 30, 2020. Oklahoma-registered investment advisers should meet this same deadline."

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 Commission's ("SEC") plans for remote work and Form CRS exams, compliance solutions for Chief Compliance Officers ("CCOs"), and how advisors can use video.

Many of our previous blog posts covering the new Form CRS ("ADV Part 3") requirement for registered investment adviser ("RIA") firms have focused on the key considerations when creating the new Form CRS including the five required items. However, as the risk alert issued on April 7, 2020 by the Securities and Exchange Commission ("SEC") Office of Compliance Inspections and Examinations ("OCIE") highlights, drafting the new Form CRS is only the initial step of the new regulatory requirement. SEC-registered RIA firms that serve retail investors which are subject to this new regulatory requirement also need to focus on the filing, posting, and delivery of the new Form CRS as well as new bookkeeping requirements that may require advisory firms to make significant changes to their compliance programs. 

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 Commission ("SEC") issuing a sweep of public companies who have applied for or received a Paycheck Protection Program ("PPP") loan, the Financial Industry Regulatory Authority's ("FINRA") lack of guidance on branch examinations during COVID-19, and the steps to take to create a succession plan. 

Registered investment adviser ("RIA") firms of every size are required to keep true, accurate, and current books and records related to financials. This is a requirement of both firms who are registered with the Securities and Exchange Commission ("SEC") and state-registered firms. The Chief Compliance Officers ("CCO") needs to understand the financial requirements its firm held to and avoid compliance deficiencies related to financials by following regulatory guidelines, best practices, and keeping required financial records where necessary. 

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 Commission's ("SEC") recent guidance on Paycheck Protection Program ("PPP") loans, Regulation Best Interest ("Reg BI") implementation deadline, and the Financial Industry Regulatory Authority's ("FINRA") and the North American Securities Administrators Association's ("NASAA") online test-taking service. 

With the advent of the CARES Act in response to the Coronavirus Disease 2019 (COVID 19), businesses throughout the United States are trying to figure out how to react in a number of ways, particularly financially. Part of that equation for a small business, including a registered investment advisers (RIA) firm, is determining whether to apply for the Paycheck Protection Program (PPP) established by the U.S. Small Business Administration.

In order to obtain a loan under the PPP, an eligible small business must (among meeting other requirements) certify on the application that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations” of the firm. This requirement has left many investment advisers wondering if this threshold – “necessary to support the ongoing operations”– means that the RIA firm must make a disclosure regarding its financial situation to its clients.

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 focus on the recent release of the North American Securities Administrators Association's ("NASAA") annual report, a rise in cybersecurity deficiencies, and the Securities and Exchange Commission's ("SEC") guidance for advisors on disclosing PPP loans on their Form ADV. 

The North American Securities Administrators Association (“NASAA”) has released its 2019 Investment Adviser Coordinated Examinations Report. This report is released on a biennial basis and analyzes the findings from adviser examinations and offers best practices. As RIA Compliance Consultants, we recommend that the Chief Compliance Officer (“CCO”) of all investment advisory firms review the regulatory exam summary report to determine if any changes should be implemented at their firm as a result of NASAA’s findings.