RIA Compliance and Practice Management Blog

The findings in this blog post come from our annual survey of over 1,600 registered investment adviser ("RIA") firms that was conducted in the first quarter of 2020. This proprietary RIA in a Box study is paired with publicly accessible data provided by the Securities and Exchange Commission ("SEC"). The goal of our annual study is to understand different options that comprise each firm characteristic, and to determine whether specific characteristics impact the growth, size, or operational efficiency of an RIA firm. In this blog post, we will explore our survey results in response to customer relationship management (“CRM”) systems used by 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 Paycheck Protection Program ("PPP") loans, the Securities and Exchange Commission's ("SEC") Regulation Best Interest ("Reg BI"), and a recent RIA in a Box partnership with Morningstar, Redtail, and Riskalyze.

We are excited to announce we've partnered with industry leaders Morningstar, Redtail Technology (Redtail), and Riskalyze to help advisors form new registered investment adviser (RIA) firms and work remotely and more efficiently in the wake of COVID-19. The Path to Independence Promotion will allow advisors that partner with RIA in a Box® to register a new RIA firm to use industry-leading cloud-based technology from the supporting firms, free of charge, based on their unique business needs through December 2020. 

As RIA compliance consultants, we regularly talk to thousands of current and prospective registered investment adviser ("RIA") firms about their business model, needs, and future business plans. Some of these conversations center around a growth plan to expand their business while others are focused on helping an advisor protect the practice they have built after years of hard work. Many times these conversations revolve around the compliance responsibilities an advisory firm will face based on the firm's size, business model, and the current states it conducts business in which it is registered or notice 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 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.