RIA Compliance and Practice Management Blog

On November 24, 2020, North American Securities Administration Association ("NASAA") members elected to adopt an investment adviser continuing education requirement with the goal of ensuring that advisors receive proper and updated training on the securities business relevant to their duties and obligations. The rule was originally proposed in February 2020 and was open to the public for comments until the middle of April. To seek further feedback, NASAA conducted a survey in September 2020 and requested comments regarding a proposed amendment in October 2020.

While many financial service professionals are subject to a continuing education requirement, investment advisers have not had such a requirement in the past. Meanwhile, investment advisers maintain an impactful role on the financial health of many individuals and households across the country. Concerned with this dynamic, NASAA sought data on the topic in 2017. Overwhelmingly, NASAA Members viewed an Investment Adviser Continuing Education ("IAR CE") as a necessity. With this in mind, NASAA designed a framework for such a requirement.

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 North American Securities Administrators Association's ("NASAA") most recent model rules, the importance of succession planning, and successful Securities and Exchange Commission ("SEC") exams during the pandemic. Here's our top investment adviser compliance articles for the week of November 27th, 2020:

On November 24, 2020, North American Securities Administration Association ("NASAA") members voted to adopt a model rule that creates a requirement for a registered investment adviser ("RIA") firm to establish, maintain, and enforce written policies and procedures tailored to the advisory firm's business model.  This new model rule was developed with the the hope of strengthening advisers' already existing manuals, assisting advisers in creating their initial policies and procedures, and emphasizing the importance of the document.

NASAA provides the list of requirements within the model rule and dives deeper into what each requirement entails. A Sample Compliance Grid is also provided for firms to utilize and build their own policies and procedures or to assess and strengthen their current document.

On November 19, 2020, the Securities and Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) released a new risk alert regarding registered investment adviser ("RIA") compliance deficiencies related to Rule 206(4)-7, also known as the "Compliance Rule", under the Investment Advisers Act of 1940 ("Advisers Act"). Many of the deficiencies center around inadequate policies and procedures which is the primary document that RIA firms should design, implement, and regularly revise to avoid violating the Compliance Rule. 

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") latest risk alert on the compliance rule, E-signature rules, the Share Class Initiative. Here's our top investment adviser compliance articles for the week of November 13th, 2020:

On November 2, 2020, the Securities and Exchange Commission ("SEC") released its Division of Enforcement 2020 annual report which highlights the 715 enforcement actions pursued during its most recent fiscal year. This latest annual report also shows how the SEC initially responded to COVID-19 and how they are working to uphold the integrity of investors during the global pandemic. In addition, the Commission has continued to focus on "Financial Fraud and Issuer Disclosure" and also saw a record-breaking year for the whistleblower program. During the 2020 fiscal year, the SEC filed 405 stand alone enforcement actions, 180 follow-on administrative proceedings, and 130 enforcement actions related to delinquent filings.

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") latest risk alert on multi branch office risks, the recent growth of the RIA industry, and how beneficial social media can be for advisors. Here's our top investment adviser compliance articles for the week of November 6th, 2020:

On November 9, 2020, the Securities and Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) released a new risk alert with new information pertaining to a series of exams conducted that focused on registered investment adviser ("RIA") firms operating from numerous branch offices and with operations geographically dispersed from the adviser’s principal or main office, better known as the “Multi-Branch Initiative.” According to the SEC, "This Initiative focused on, among other things, the assessment of the compliance and supervisory practices relating to advisory personnel working within the advisers’ branch offices."

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") drop in enforcement actions, whether we should hold chief compliance officers ("CCOs") personally liable, and the importance of cybersecurity for investment advisors. Here's our top investment adviser compliance articles for the week of October 30th, 2020:

One of our company's longstanding commitments is investing time and resources to make the RIA in a Box MyRIACompliance^® platform the industry leading compliance technology offering for registered investment adviser ("RIA") firms. We put the client first by delivering innovative software and expert advice. Since 2005 we take pride in partnering with our clients to establish and support the highest quality registered investment adviser firms in the country.  At RIA in a Box, we release new MyRIACompliance^® software features and enhancements on a daily basis to meet the growing compliance challenges that investment advisers continue to confront.