RIA Compliance and Practice Management Blog

As a registered investment adviser (RIA), you understand the importance of compliance. But keeping up with the latest Securities and Exchange Commission (SEC) requirements can be incredibly difficult when you’re also juggling client meetings, portfolio management and everything else that comes with the life of an adviser.

Without a dedicated person to keep team members accountable, how can your advisers know for sure they’re following the latest rules and regulations?

Each Friday, we are giving you our weekly report highlighting the top compliance news articles from various industry 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 continuing education requirements which investment adviser representatives (IARs) would have to meet in 2023, the Department of Labor’s (DOL) independent contractor rule and how it would affect those who are currently considered independent contractors and the mixed responses to the Securities and Exchange Commission’s (SEC) outsourcing proposed rule.

Here are our top investment adviser compliance articles for the week of Jan. 20, 2023:

In late October of 2022, the Securities and Exchange Commission (SEC) shared its vendor due diligence proposed rule, also referred to as the “outsourcing proposal” and the “independent contractor proposal.” The proposed rule would require registered investment advisers (RIA) to satisfy specific due diligence elements before retaining a service provider to perform certain advisory services or functions. The rule would require advisers to conduct due diligence and periodic monitoring for all third-party service providers and obtain reasonable assurances the service provider can and will meet certain standards. Finally, the proposal would require advisers to maintain books and records related to the new rule’s oversight obligations and to report census-type information about the service providers covered under the rule.

While the proposal has been met with opposition, it was intended to protect against potential investor harm in circumstances where investment advisers don’t properly vet and monitor their service providers. If the rule is adopted, it will likely add to the investment advisers’ due diligence responsibilities, heightening the need and importance of vetting vendors and protecting investors and clients. 

Each Friday, 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 how wealth management firms can keep compliant in 2023, the Securities and Exchange Commission’s (SEC) regulatory power, the agency’s decision to award a whistleblower $5 million for reporting misconduct, the Certified Financial Planner (CFP) board’s decision to ban a dozen advisers for either neglecting or misleading clients and the challenges firms may face in trying to comply with the SEC’s new marketing rule for investment advisers.

Here are our top investment adviser compliance articles for the week of Jan. 13, 2023:

The Securities and Exchange Commission (SEC) recently released its Fall 2022 Regulatory Flexibility Agenda. While not all the rules included in the list have passed, the list provides a sense of the SEC’s rulemaking priorities for RIA firms in the coming year. The list also indicates what investment advisers can expect the regulators will heavily scrutinize during examinations in 2023.

We’ve examined the list and pulled out a few themes. Here is where the SEC is headed with rule making and where the agency will likely focus should all these rules pass.

It’s a new year, and registered investment advisers (RIA) can begin to add 2023 compliance conferences to their calendars!

Some investment advisers may look forward to the opportunity to network with industry professionals and connect in-person, with the chance to escape from the digital burnout. While others can take advantage of fully virtual conferences or hybrid options to stay on top of the latest industry trends and education topics from their home office. In this blog post, we list the top industry conferences for RIAs to attend in 2023.

Each Friday, 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 how firms can meet the Securities and Exchange Commission’s (SEC) electronic books and record-keeping regulation, a new database which tracks and reports adviser misconduct data, the SEC’s policy agenda for 2023, how advisers need to market in the changing financial landscape and the North American Securities Administrators Association’s (NASAA) plans to push lawmakers to act against bad actors.

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

In 2022, RIA in a Box provided our audience with registered investment adviser (RIA) operation, RIA technology and RIA compliance blogs which covered topics like Securities and Exchange Commission (SEC) proposed rules and risk alerts, investment adviser representative (IAR) continuing education (CE) requirements, types of audits and more. In this blog, we’ll recap the highlights from the past year, providing you with our top ten RIA blogs from 2022.

The annual review is a tried-and-true practice for any registered investment adviser (RIA). And guess what? It’s that time of year again. While there is not set schedule for when your RIA firm must conduct its annual review, many firms use this time (December to March) to do such annual review activities, including reviewing their policies and procedures and conducting the annual review meeting with all firm employees.

To help ensure a smooth 2023 annual compliance review, we’ve gathered the top 10 dos and don’ts to remember as your RIA seeks to comply with relevant regulations, be it state or Securities and Exchange Commission (SEC) mandated.

Every registered investment adviser (RIA) registered with the Securities and Exchange Commission (SEC) is required to create and regularly update their policies and procedures manual in order to comply with the Investment Advisers Act of 1940 (Advisers Act).

As a rule of thumb, your firm should be reviewing your policies and procedures manual at least once a year, however, more frequent reviews can be extremely helpful during times of increased regulatory change. Why? Regular reviews can help the Chief Compliance Office (CCO) and other key team members prevent or detect potential violations, especially when new rules are enacted or regulations change.

Here’s a look at how you and your team can best create and update your RIA firm’s policies and procedures for 2023.