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 successful use of video by advisors, the Securities and Exchange Commission ("SEC") still finding omissions of disciplinary history on Form CRS, and what should be considered when deciding to go independent. Here's our top investment adviser compliance articles for the week of October 9th, 2020:

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 firms not disclosing disciplinary history on Form CRS, the Certified Financial Planner ("CFP") Board of Standards offering remote testing for the November exam, and a push for consistent regulation of the fee-for-service model. Here's our top investment adviser compliance articles for the week of October 9th, 2020:

Over the years, we have helped thousands of registered investment adviser (RIA) firms manage the initial registration process and navigate a myriad of ongoing regulatory compliance obligations. Given the diverse array of types and sizes of RIA firms, specific compliance requirements will vary significantly firm to firm. Often for smaller RIA firms registered both at the state or federal level with the Securities and Exchange Commission (SEC), there will not be an experienced or dedicated full-time Chief Compliance Officer (CCO). On the other hand, for larger firms, the CCO may have a very strong investment adviser compliance background and be exclusively focused on leading the RIA firm's compliance program.

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 continued complications with the Form CRS, the Securities and Exchange Commission ("SEC") seeing increased enforcement actions during the pandemic, and what is still unknown about Regulation Best Interest ("Reg BI"). Here's our top investment adviser compliance articles for the week of October 2nd, 2020:

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 new Private Fund Platform released by RIA in a Box, the Securities and Exchange Commission's ("SEC") concerns surrounding credential stuffing, and why registered investment advisors ("RIA") are reluctant to use the term 'fiduciary'. Here's our top investment adviser compliance articles for the week of September 25th, 2020:

The U.S. Investment Advisers Act of 1940 (the "Advisers Act"), as amended by the Dodd-Frank Act, not only required registration of thousands of investment advisers, but also implemented a new category for a narrow class of advisory firms: the Exempt Reporting Adviser.¹

Exempt Reporting Advisers ("ERAs") are investment advisers that are not required to register as an adviser with the U.S. Securities Exchange Commission ("SEC") or state regulators, but must still pay fees and report public information via the IARD/FINRA system. Federally, the two exemptions that advisers can use to claim ERA status with the SEC are (i) the Private Fund Adviser Exemption or (ii) the Venture Capital Fund Adviser Exemption.

As of October 1, 2020, according to SEC public filings, there are 4,557 exempt reporting advisers which have filed an abbreviated Form ADV with the SEC. This compares to 2,378 ERA firms in 2013. Thus, over the past seven years, the number of ERA firms has nearly doubled. Since 2014, the number of SEC-registered ERAs has surpassed the number of private fund advisers registered with the SEC as RIA firms.

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 release of the North American Securities Administrators Association's ("NASAA") annual enforcement report, the release of RIA in a Box's Private Fund Platform, and the Securities and Exchange Commission ("SEC") changing the definition of accredited investor. Here's our top investment adviser compliance articles for the week of September 18th, 2020:

Today, we are excited to announce the official release of our new Private Fund Platform, a customized version of our industry-leading MyRIACompliance® online RIA compliance software platform. The new platform is designed to address the unique regulatory requirements faced by private fund advisers including venture capital, private equity, and hedge fund managers. The new private fund platform provides tools to manage and automate compliance processes and streamline regulatory filings, all in a centralized location saving private fund advisers time and money and providing them reassurance they are meeting all compliance requirements. The new platform is designed for SEC-registered private fund advisers and exempt reporting advisers (ERAs). 

On September 15, 2020, the Securities and Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) released a new risk alert with new information pertaining to an increase in the number of cyberattacks observed in recent examinations of SEC-registered registered investment adviser (“RIA”) firms using credential stuffing. “Credential stuffing is emerging as a more effective way for attackers to gain unauthorized access to customer accounts and/or firm systems than traditional brute force password attacks.”