RIA Compliance and Practice Management Blog

Each week, we are 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 potential anti-money laundering regulation, compliance with the Fiduciary Rule, the Securities and Exchange Commission's ("SEC") comment period before rule making, and a House bill aimed at preventing elder abuse.

Here are our top investment adviser compliance articles for the week of May 6th, 2022:

Amid the increasing cybersecurity threats like ransomware, phishing scams, and malware, regulators are focusing on strengthening cybersecurity measures across the wealth management industry. 

Registered investment adviser ("RIA") firms must enhance their cybersecurity programs to meet the evolving compliance requirements and protect their firms from advanced threats. In this Q & A with Richard Mabbun, Co-Founder of ITEGRIA, we explore how firms can make employees their best cybersecurity defense.

Each week, we are 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 compliance guidance for small firms, the Securities and Exchange Commission's ("SEC") proposed Cybersecurity Rule, concerns with compliance with the Marketing Rule, preventing elder abuse, and increased regulatory attention on the cryptocurrency market. 

Here are our top investment adviser compliance articles for the week of April 29th, 2022:

There are many factors to consider when hiring a new team member for your registered investment adviser (“RIA”) firm. Each new member of your team brings their own unique background and experiences to your firm, making it a critical task for the hiring manager to gather certain information about compliance. In fact, it is crucial for your RIA firm to understand the regulatory considerations when hiring any new employee, whether they’re an investment adviser representative, in human resources, or doing administrative work. Each role within your firm requires different levels of compliance oversight and access control. 

Below we discuss the key compliance considerations that your firm should consider throughout the hiring process.

On April 26, 2022, the Securities and Exchange Commission (“SEC”) Division of Examinations (“EXAMS”) released a new risk alert highlighting the recently observed deficiencies related to Section 204A of the Investment Advisers Act of 1940, (the “Advisers Act”) and Rule 204A-1 (the “Code of Ethics Rule”).  

Investment advisers must establish, maintain, and implement policies and procedures to prevent the misuse of potential material non-public information (“MNPI”) by the adviser or any relevant persons identified as "access persons". 

Below we discuss both the compliance deficiencies and best practices highlighted in this investment adviser risk alert.

Each week, we are 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 developing a scalable compliance program, the North American Securities Administrators Association ("NASAA") Continuing Education Model Rule, ComplySci's 2022 Chief Compliance Officer Playbook, and conflicts related to the definition of fiduciary status. 

Here are our top investment adviser compliance articles for the week of April 22nd, 2022:

Financial firms, such as registered investment advisers (“RIAs”), have undoubtedly become a popular target for cyber attackers. In this blog post, we discuss five major elements to address when developing or enhancing your RIA firm’s cybersecurity program in 2022: 1) users, 2) infrastructure, 3) reporting, 4) review, and 5) testing. 

Each week, we are 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 RIA annual review process, the Securities and Exchange Commission's ("SEC") guidance for the term "fiduciary", and the path to independence for advisers managing $500M in AUM.

Here are our top investment adviser compliance articles for the week of April 15th, 2022:

As compliance consultants to registered investment adviser (“RIA”) firms, we understand that there is often uncertainty about the interpretation of the custody rule. The Securities and Exchange Commission’s (“SEC”) Rule 206(4)-2 of the Adviser’s Act, also known as the custody rule, governs the holding of client securities and funds by federally registered RIA firms. In this blog post, we provide an overview of state and federal custody rules, common deficiencies, and the requirements for RIAs.

• For registered investment advisor ("RIA") firms, technology is a non-negotiable part of running a business. From reporting and billing to portfolio management to client experience – not to mention the tech required to allow employees to work and meet with clients remotely – RIAs leverage tech stacks to drive efficiencies, support growth in a cost-effective way, and meet increasing client demands.

  But as they say (sort of): with great technology comes great responsibility. When you consider the sheer volume of sensitive financial data RIA firms need to protect, plus increasing SEC cybersecurity compliance regulations, managing RIA technology becomes a colossal undertaking.