RIA Compliance and Practice Management Blog

Top RIA Compliance News Articles for the Week of June 4th, 2021

Posted by RIA in a Box

Jun 11, 2021 3:56:47 PM

Top RIA compliance articles focus on the SEC's scheduled rule reviews, tips for remote exams, and possible anti-money laundering policy plans for RIAs. 

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 technology announcements in the RIA industry, a call for increased funding and staffing within the SEC, and responses to industry questions related to moving to the RIA model. 

Here's our top investment adviser compliance articles for the week of June 4th, 2021:

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     1. The Latest In Financial #AdvisorTech (June 2021) (Authors – Michael Kitces and Kyle Van Pelt – Kitces.com)

This article highlights the latest announcements and trends in technology for the wealth management industry. Included in the list of announcements is the recent acquisition of Itegria by RIA in a Box. RIA in a Box has expanded its IT and cybersecurity offerings to RIA firms through this strategic acquisition.

Highlights also include the following: 1) Zoe Financial raised a $10M Series A investment round to advance its product development to help advisors with lead generation, 2) FMG Suite and WealthTender release new marketing modules for advisors to leverage client testimonials, and 3) Altruist raises $50M as it shifts from RIA custodian to the All-In-One overlay that powers one.

     2. SEC Plans Hiring Push for Exams, Enforcement in 2022 (Author – Melanie Waddell, Think Advisor

Melanie Waddell informs readers about the SEC’s request for increased funding to carry out its plan to add 65 positions to keep up with the growth of the RIA industry. The SEC has shared its hiring intentions, including the following roles and focus areas: 1) additional support for the diversity and inclusion initiatives, 2) assistance to the Inspector General on matters such as audits and cybercrime, 3) to enhance and modernize IT infrastructure, 4) focus on complex investigations of large financial institutions, 5) additional support for examinations, support for rule-making related to trading and Reg BI, and 6) help to oversee the surge of IPOs and SPACs.

     3. SEC Chairman Proposes Review of Rules Underpinning Stock Trading (Author – Ben Bain, Wealth Management)

This week, SEC Chairman Gary Gensler called for the SEC to review the rules of trading in the U.S. equity market. In this request, Gensler asked the agency to examine matters related to brokers’ best execution requirements and suggested that the stock-trade settlement process could be shortened to the same day. Gensler has reiterated his focus on protecting investors and making sure they are getting the best deals for their trades.

     4. Trendspotter: Markets Are Evolving Faster Than the SEC (Author – Melanie Waddell, Think Advisor)

SEC Chairman Gary Gensler testified before the House Appropriations Committee regarding the need for funding and staffing within the SEC to appropriately meet the needs of the growing capital markets. The SEC is requesting $1.993B for fiscal year 2022, to respond to the unprecedented growth in the areas such as SPACs, IPOs, private funds, crypto tokens, and fintech startups.

Melanie Waddell shares anecdotes of support for Gensler’s initiatives from industry experts. In example, Carlo di Florio, Chief Global Services Officer of the ACA Group states, “His testimony reflected an appreciation for the positive contributions of FinTech in terms of greater access to our capital markets, while at the same time clearly recognizing the risks to investor protection and market integrity posed by the use of gamification and data analytics to trigger behaviors that could be harmful to investors and potentially even pose systemic risks.”

     5. Answering questions about going RIA (Author – Brad Wales, Investment News)

Brad Wales responds to questions that were raised during the panel event at the InvestmentNews RIA Summit last month. The first question discussed is about the level of client assets managed before starting an RIA, to which Wales tell readers’ that asset level is not the main focus. Instead, he suggests mapping out your goals and vision for your own practice to determine whether you have the resources to achieve that path, whether it be starting an RIA or “tucking-in” to an existing firm. He goes on to answer other questions related to the tuck-in model and compliance responsibilities. Wales concludes the article by sharing that when asked about the ideal time to move to the RIA model, most advisers answer that they wish they would have moved to the RIA model sooner.

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Don't forget to check out last week's top RIA compliance news articles that focus on Think Advisor's Tech Round Up, an upward trend of fee-only models for RIAs, and anticipated changes to the Fiduciary Rule. 

Topics: RIA Operations, RIA Compliance, RIA Technology

RIA in a Box LLC is not a law firm, investment advisory firm, or CPA firm. RIA in a Box LLC does not provide legal advice or opinions to any party or client. You should always consult your relevant regulatory authorities or legal counsel if applicable.

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