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 regulatory Form CRS filing failures, the fiduciary rule, and the path to independence.

Here are our top investment adviser compliance articles for the week of February 11th, 2022:

On February 9, 2022, the Securities and Exchange Commission ("SEC") formally proposed new rules related to cybersecurity risk management for Registered Investment Advisers ("RIA"s) and Private Fund Advisers.  This new proposal titled “Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies," are aimed to enhance cybersecurity preparedness and improve the resilience of investment advisers and investment companies against cybersecurity threats and attacks.

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 Continuing Education rules, a Securities and Exchange Commission (SEC) cyber rule proposal, and proposed private fund acquisition disclosure speed changes.

Here are our top investment adviser compliance articles for the week of February 4th, 2022:

Today, multi-factor authentication ("MFA") is a common feature in many registered investment adviser ("RIA") technology systems. But what does it actually mean? In short, MFA is an authentication method that requires the user to provide two or more verification factors to gain access to a resource to verify a user’s identity. This additional level of security is particularly relevant to RIA firms given their access to sensitive client data and that a firm's employees are the firm's greatest cybersecurity threat. Employees often pose a significant risk to cloud-based systems in which each user accesses the system via his or her own individual login.

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 Securities and Exchange Commission (SEC) recent private fund risk alert, Form PF proposed amendments, the upcoming proposal of cybersecurity rules, and the February 1st Department of Labor (DOL) Fiduciary Rule enforcement date.

Here are our top investment adviser compliance articles for the week of January 28th, 2022:

On January 27, 2022, the Securities and Exchange Commission (“SEC”) Division of Examinations (“EXAMS”)  released a new risk alert "Observations from Examinations of Private Fund Advisers" providing an overview of compliance issues observed by
EXAMS staff in examinations of registered investment advisers ("RIA") that manage private equity funds or hedge funds (collectively, “private fund advisers”). The four primary areas of deficiencies noted in this risk alert include: 1) failure to act consistently with disclosures, 2) use of misleading disclosures regarding performance and marketing 3) due diligence failures relating to investments or service providers, and 4) use of potentially misleading “hedge clauses.”

Below we discuss the compliance deficiencies highlighted in this advisor compliance 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 changes to Form PF for private equity and hedge fund advisors, a Securities and Exchange Commission's (SEC) cybersecurity rule, and a SEC warning on regulatory gray areas.

Here are our top investment adviser compliance articles for the week of January 21st, 2022:

The Division of Examinations administers the Securities and Exchange Commission's (“SEC”) nationwide examination and inspection program. Individual states generally have an examinations division that administers the inspection program. Many states follow the majority of the North American Securities Administrators Association ("NASAA") model rules. 

These programs are designed to detect fraud and other violations of the securities laws, foster a culture of compliance, and ensure that the SEC is continually informed of developments and areas of potential risk related to investment advisory firms. Continue reading to learn about the three most common types of audits that an RIA Firm can undergo.

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 Form CRS and the term "fiduciary", the Securities and Exchange Commission (SEC's) 30-day comment period for rule proposals, and the search for candidates for the SEC Investor Advisory Committee.
Here are our top investment adviser compliance articles for the week of January 14th, 2022:

By definition, exempt reporting advisers (“ERA”) are investment advisers that are not required to register as an adviser with the Securities and Exchange Commission ("SEC") or state regulators, but must still pay fees and report public information via the IARD/FINRA system. As a partner to ERA’s and registered investment adviser (“RIA”) firm’s, we are often asked if and when an ERA would need to transition to the status of an RIA firm. In this blog post, we cover the conditions which would require an ERA to register as a RIA, as well the steps to take to become registered with the state or federal regulators.