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.
Here's our top investment adviser compliance articles for the week of May 22nd, 2020:
GJ King, president of RIA in a Box, discusses the benefits MyRIAComplaince has for registered investment advisors, and the added benefit of being a cloud-based software platform during COVID-19. RIA in a Box’s MyRIACompliance software serves as a solution for many tasks and challenges a Chief Compliance Officer (“CCO”) faces, and it is all on one platform. The software is constantly evolving as well, with the most recent example being the creation of the Form CRS tool to assist firms with creating the document to abide by Regulation Best Interest (“Reg BI”). King explains further, “All RIA in a Box MyRIACompliance subscribers have complimentary access to the proprietary online Form CRS tool that utilizes the firm’s existing Form ADV data, along with a short, rules-based smart questionnaire to streamline the Form CRS creation process.”
2. Small firms face greater cyber risks amid pandemic (Author - Devin McGinley, InvestmentNews)
According to the 2020 InvestmentNews Adviser Technology Study, smaller firms are at an even greater risk of cyberthreats and attacks during the new normal of COVID-19. In the past, larger firms have always reported higher numbers of cybersecurity slips, but with increasing electronic communication and remote working arrangements, smaller firms have opened the door to many more cyberattacks. The reason behind the rising numbers is the fact that “only 43% of solo firms had policies on the use of nonbusiness devices for work, compared to 83% of the largest firms. Although the gaps were not as significant, large firms were also more likely to have encryption on all devices and continuity-of-business plans in place.”
3. 4 Ways to Firm Up Your Continuity Plan, Now (Author - Todd Fulks, ThinkAdvisor)
Todd Fulks leads us through four important steps to take to ensure your continuity plan will stand firm in times of crisis. Between the pandemic forcing firms to work remotely and the upcoming Reg BI deadline, advisors have a lot more on their plate than usual. As a result, less pressing issues such as a continuity plan may fall to the wayside. Fulks suggests running an inventory of documents first to create a foundation and find your starting point. Focus on key details and quick, actionable steps. “A continuity plan needs to be easy to implement, include clear roles and responsibilities for each team member, and convey a step-by-step process for executing leadership changes, whether they are temporary or permanent”, Fulks explains.
4. Staying safe on Zoom: Useful tips for advisors and clients (Author- Kimberly Foss, FinancialPlanning)
5. PPP Loans Could Haunt Advisors (Author - Jeff Berman, ThinkAdvisor)
Don't forget to check out last week's top RIA compliance news articles on the Securities and Exchange Commission's ("SEC") plans for remote work and Form CRS exams, compliance solutions for Chief Compliance Officers , and how advisors can use video.