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  the Securities and Exchange Commission’s (“SEC”) wrap fee program risk alert, enforcements for firm’s that failed to file and deliver the customer relationship summary (“Form CRS”), and potential legislation that would have an impact on family offices.

Here's our top investment adviser compliance articles for the week of July 23rd, 2021:

Conducting business in the digital age makes nearly all day-to-day tasks more efficient, cost-effective, and accessible compared to only a few years ago. Clients can complete and sign necessary documents, meet with their advisor, and check live reports on their portfolio from the comfort of their own homes.

Indeed, the convenience of the digital, online age has opened the world of business up to more people and more opportunities than ever before—but it has also left registered investment adviser ("RIA") firms more vulnerable than ever before. The rapid pace of evolution in technology often results in weak points that hackers can exploit to gain access to sensitive client and corporate information.

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's ("SEC") risk alert on wrap fee programs, concerns over environmental, social, and governance ("ESG") regulation, and a look at how the pandemic affected how RIAs are doing business. 

Here's our top investment adviser compliance articles for the week of July 16th, 2021:

On July 21, 2021, the Securities and Exchange Commission (“SEC”) Division of Examinations issued a new risk alert discussing the findings from recent examinations of more than 100 investment advisers registered with the SEC associated with wrap fee programs. Wrap fee programs allow investment advisers to offer a bundled comprehensive fee to their clients versus multiple charges for investment advice, brokerage services, administrative expenses, and other fees. The Division stated their decision to focus on this issue is due to the persistent growth of investor assets in wrap fee programs and the observed conflicts and disclosure practices.

The SEC’s “Wrap Fee Initiative” examined portfolio managers or sponsors of wrap fee programs and advisers with client accounts in one or more unaffiliated third-party wrap fee programs. The outcome shows that many examined advisers’ compliance programs could be improved, specifically in the areas of compliance and oversight as well as disclosures.

When establishing a new registered investment adviser ("RIA") firm, you have a substantial list of duties to perform. Starting from registration, compliance duties, employee supervision and client acquisition – and the list goes on. But what about securing payment for your advisory services? Or reminding clients of outstanding bills? Or even managing incoming payments? All of this does not sound too complicated in theory, but these processes can take up a significant amount of time if not executed efficiently. This blog post will cover some of the most common billing-related issues RIA firms face, how to avoid them, and how your firm can benefit in the long-term by streamlining this process.

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 a shift in adviser fee structures, a call for the Securities and Exchange Commission ("SEC") to evolve its regulation with the increase of technology use, environmental, social, and governance ("ESG") regulation. 

Here's our top investment adviser compliance articles for the week of July 9th, 2021:

SEC Rule 206(4)-7 under the Investment Advisers Act of 1940, more commonly referred to as the “Compliance Rule,” requires a registered investment adviser (RIA) firm to designate an individual with working knowledge of compliance regulations as the firm’s Chief Compliance Officer (“CCO”).

Below, we will discuss some considerations when selecting a CCO for your RIA firm.

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 RIA in a Box's Communications Archiving and Review product release, a push for Securities and Exchange Commission ("SEC") action on diversity and ESG disclosures, South Carolina legislation to protect elder financial abuse, and a call for regulation on cryptocurrency. 

Here's our top investment adviser compliance articles for the week of July 2nd, 2021:

In this post, we discuss the compliance requirements and ethical standards related to employee trading for registered investment adviser (“RIA”) firms. SEC Rule 204A-1 (the "Code of Ethics Rule") under the Advisers Act describes at length, how RIA firms can meet regulatory requirements for this particular topic. Specifically, we discuss the illegal practice of front-running and how RIA firms can do their due diligence to detect and address potential trade violations. 

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 growth of the investment adviser industry, cybersecurity priorities and strategies, and cryptocurrency regulation. 

Here's our top investment adviser compliance articles for the week of June 25th, 2021: