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Tuesday, June 23, 2015

Investment Advisers Need Strong Policies and Procedures for Supervising Social Media

Social media and networking websites are considered forms of advertising covered by Rule 206(4)-1, Advertisements by Investment Advisers, under the Investment Advisers Act of 1940 (“Investment Advisers Act”) and similar state securities regulations.  In a National Examination Risk Alert issued in 2012 by the Office of Compliance Inspections and Examinations of the U.S. Securities and Exchange Commission (“SEC”), the term social media is described as:

“Social media” is an umbrella term that encompasses various activities that integrate technology, social interaction and content creation. Social media may use many technologies, including, but not limited to, blogs, microblogs, wikis, photos and video sharing, podcasts, social networking, and virtual worlds.

As the use of social media becomes an increasingly common communication and marketing tool, investment advisers must have in place strong policies and procedures to help protect them from violations of Rule 206(4)-1 under the Investment Advisers Act or the applicable state regulations for state registered investment advisers.  Unfortunately, because social media platforms allow for information to be changed and distributed to a large audience very quickly, social media may present a challenge for investment advisers in their efforts to comply with the requirements under Rule 206(4)-1 or the applicable state securities regulations.

An investment adviser’s policies and procedures should identify the social media platforms that the investment adviser uses and the social media platforms that the investment adviser allows its investment adviser representatives to use as well as those platforms that the investment adviser prohibits its investment adviser representatives from using.  An investment adviser may also want to consider addressing in its written policies and procedures what possible disciplinary actions the investment adviser may take when a violation of the investment adviser’s policies and procedures occurs. To confirm that all supervised persons of the investment adviser have reviewed, understand, and agree to comply with the investment adviser’s social media policies and procedures, the investment adviser may consider obtaining, from each supervised person of the investment adviser, written acknowledgements of receipt and understanding of the investment adviser’s social media policies and procedures. Each investment adviser should also develop a standard way, such as a social media review/approval form, for supervised persons to report all social media sites that may make reference to or market the investment adviser or its services. The investment adviser should then require written approval or denial prior to using any social media sites to reference the investment adviser or its services.

In addition to developing policies and procedures to comply with Rule 206(4)-1 under the Investment Advisers Act, an investment adviser must take into consideration social media sites when addressing it policies and procedures for record retention requirements under the Books and Records Rule, Rule 204-2 of the Investment Advisers Act. Since social media sites are a form of advertising, an investment adviser’s policies and procedures should identify when and how electronic communications will be gathered, reviewed, retained, and maintained. An investment adviser may consider using a third party to assist with electronic surveillance and electronic messaging and data archiving for social media and networking sites. Advertising records must be maintained for five years from the date of last use and should be easily accessible so that they may be produced, if requested, during an examination of the investment adviser. If an investment adviser is using a third party service provider to assist with archiving or supervising social media sites used by the investment adviser or its investment adviser representatives, the third party should be identified in the investment adviser’s policies and procedures.

Because new forms of social media can become available at any time and what can be done through or with social media is constantly changing, an investment adviser needs to frequently review, and update as necessary, its social media policies and procedures. An investment adviser should consider establishing internal training to keep investment adviser’s supervised persons informed of the investment adviser’s social media policies and procedures and any limitations or restrictions that exist regarding the use of social media.

For more information concerning supervision of advertising and social media for investment advisers, RIA Compliance Consultants is hosting a webinar, “Session 5 – Advertising for Social Media,” as part of its “Conducting an Annual Compliance Review” series, on Thursday, June 25, 2015, at 12:00 CDT. For more information or to register for this webinar, click here.

Additionally, RIA Compliance Consultants has a variety of sample forms to assist investment advisers with meeting their ongoing compliance requirements. A Social Media Review-Approval Form is available for purchase for just $75. For more information or to purchase this form, click here. For a complete list of our available forms, click here to access our online store.

Friday, June 19, 2015

Investment Advisors Should Be Careful with Fee-Only Claims

Many registered investment advisors choose to market themselves as “fee-only” in an effort to convey the registered investment advisor firm does not accept or receive commissions, is not incentivized to sell specific investment products, or is somehow conflict free.  Although regulators have not defined “fee-only” or otherwise provided specific guidance for its use, the National Association of Personal Financial Advisors (“NAPFA”) provides a useful definition of “Fee-Only financial advisor.”

“[An advisor] who is compensated solely by the client with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial productNeither Members nor Affiliates may receive commissions, rebates, awards, finder’s fees, bonuses or other forms of compensation from others as a result of a client’s implementation of the individual’s planning recommendations. ‘Fee-offset’ arrangements, 12b-1 fees, insurance rebates or renewals and wrap fee arrangements that are transaction based are examples of compensation arrangements that do not meet the NAPFA definition of Fee-Only practice.”

Although the “fee-only” label is not inherently wrong, self-proclaimed “fee-only” registered investment advisors are held to that standard during routine U.S. Securities and Exchange Commission (“SEC”) and state regulatory examinations.  “Fee-only” firms must prove they have no other additional income sources.

If a registered investment advisor claims itself as “fee-only,” the investment advisor needs to ensure the only form of revenue generated by the investment advisor comes from fees paid directly by clients, and no additional revenue comes from non-client, third party sources.  Client fees may come in the form hourly fees, fixed fees, and asset management fees.  The key is that such fees are paid directly by the client.  An investment advisor needs to confirm that the investment advisor does not receive revenue such as insurance or broker/dealer commissions, travel or marketing reimbursements from product sponsors, bonuses from third-parties, referral fees, and any other economic incentives.

Moreover, investment advisors need to understand the types of revenue and compensation their investment advisor representatives earn through the investment advisor representatives’ other business activities.  In other words, regulators will often “look through” the investment advisor firm to examine the forms of compensation received by the investment advisor’s representatives.  If investment advisor representatives are not “fee-only,” such claims may be considered misleading.  For example, an investment advisor’s sole revenue may come from asset management fees charged to clients, but if an investment advisor representative is earning commissions or 12b-1 trails in the managed account through the investment advisor representative’s separate capacity as a broker/dealer registered representative, the arrangement is not “fee-only.”  Investment advisors need to expect that during routine investment advisor examinations, the SEC or state examiners will inquire about any possible soft dollar arrangements, marketing and travel reimbursements, commissions, etc.  Investment advisors and their supervised persons should remember that literally any other form of revenue, other than fees paid directly from a client, could be interpreted as additional revenue and suggest the investment advisor should not refer to the investment advisor as a “fee-only advisor.”

In addition to regulatory exam inquiries, NAPFA and the Certified Financial Planner (“CFP”) Board monitor and enforce their own, often higher standard of interpretation of the term “fee-only advisor.” Members of NAPFA or CFP need to fully understand these organizations position on “fee-only advisors” to avoid a violation of their standards.

RIA Compliance Consultants will be hosting a webinar, “Conducting an Annual Compliance Review – Session 5 – Advertising and Social Media,” Thursday June 25, 2015, at 12:00 PM CDT during which we discuss an investment advisor’s responsibilities for supervising advertising and social media. The fee for this webinar is $69.95. Click here to register for the webinar.  If you are looking for more insight or guidance regarding the ongoing compliance responsibilities of investment advisors, you may want to consider signing-up for our annual subscription to live and recorded webinars for just $545.  Click here for more information or to purchase an annual subscription.

RIA Compliance Consultants can assist your investment advisor with developing the investment advisor’s advertising and marketing compliance policies and procedures or can assist your investment advisor with advertising and marketing reviews. If you would like more information regarding these or any of our compliance support services, contact your consultant if you are an existing client or click here to schedule a time to speak with one of our consultants if you have not previously worked with RIA Compliance Consultants.

Tuesday, June 16, 2015

SEC Proposes Rule Recommending Amendments to Form ADV and the Investment Advisers Act Books and Records Rule

On June 12, 2015, the U.S. Securities and Exchange Commission (“SEC”) published in the Federal Register a proposed rule recommending amendments to the Form ADV. Additionally, the proposed rule addresses amendments proposed to the Books and Records Rule, Rule 204-2, under the Investment Advisers Act of 1940 (“Investment Advisers Act”) and several technical amendments proposed to rules under the Investment Advisers Act to remove transition provisions that were adopted but are no longer necessary. The proposed amendments to the Form ADV would require investment advisers to provide additional information that will help the SEC and investors to better understand the risk profile of the individual investment advisers and the industry in general. The proposed amendments to Rule 204-2 of the Investment Advisers Act would expand the records investment advisers are required to maintain related to performance calculations and performance related communications. In a press release dated May 20, 2015, SEC Chair Mary Jo White is quoted as stating, “Investors will have better quality and greater access to information about … investment advisers, and the SEC will have more and better information to monitor risks in the asset management industry.”

The following are highlights of some of the proposed changes:

  1. PROPOSED FORM ADV AMENDMENTS
  • Information Regarding Separately Managed Accounts – Several of the proposed Form ADV amendments would require investment advisers to provide more detailed information concerning investment advisers’ separately managed accounts. The proposal states, “For purposes of reporting on Form ADV, we consider advisory accounts other than those that are pooled investment vehicles…to be separately managed accounts.” Under the proposed rule, investment advisers would be required to provide information specifically about the investment advisers’ separately managed accounts, which would include the types of assets held and, for certain investment advisers, the use of derivatives and borrowings in the account. Additionally, in certain circumstances, the proposed rule would require investment advisers to identify any custodians where separately managed account assets are held.
  • Additional Information about the Investment Adviser – Under the proposal, additional questions would be added to the Form ADV to improve certain identifying information obtained; additional information about the advisory business; and additional information about financial industry affiliations and private fund reporting. Some examples of the additional information that would be included in this area would be:
    • expanded branch office information;
    • information regarding the use of websites for social media platforms;
    • information regarding whether the investment adviser’s chief compliance officer is compensated or employed by anyone other than the investment adviser;
    • more specific information related to client types and regulatory assets under management attributable to client types;
    • information regarding the number of clients that the investment adviser provided investment advisory services to but does not have regulatory assets under management for; and
    • information regarding the amount of regulatory assets under management that is attributable to non-U.S. clients.
  • Umbrella Registration – Some investment advisers to private funds may be organized as a group of related investment advisers that are separate legal entities operating as, and appearing to investors and regulators to be, a single advisory business. Because of the way the Form ADV is currently organized, private fund advisers organized as a group of related investment advisers could have to file multiple investment adviser registration forms for the same advisory business. The SEC has proposed amendments to the Form ADV Part 1A that would simplify the process of registration for these investment advisers while providing additional and more consistent data about private fund advisers that operate in this manner.
  1. PROPOSED RECORD KEEPING REQUIREMENTS AMENDMENTS

One of the proposed revisions to Rule 204-2, the Books and Records Rule, under the Investment Advisers Act would require investment advisers to maintain performance calculations and performance related communications that the investment adviser circulates or distributes to “any person” instead of “ten or more persons” as currently stated in Rule 204-2.  Additionally, the SEC is proposing an amendment to require investment advisers to maintain originals of all written communications received and copies of written communications sent by an investment adviser relating to the performance or rate of return of any or all managed accounts or securities recommendations.

The information provided above is only a highlight of some of the proposed amendments. Investment advisers are strongly encouraged to review the entire proposed rule to gain a better understanding of the proposed changes. The SEC has opened a 60 day response period for investment advisers to provide feedback regarding the proposed amendments.   Comments will be accepted until August 11, 2015.

You can submit your comments regarding the proposed amendments by the following methods:

 Electronic comments:

Paper comments:

  • Send paper comments to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090.

Investment advisers should continue to monitor developments regarding the proposed changes. RIA Compliance Consultants can assist you if you have any questions, need assistance with revisions to your advisory documents, or need assistance in developing new advisory documents. If you would like to further discuss how we can assist you, contact your consultant if you are an existing client or click here to schedule a time to speak with one of our consultants.

Tuesday, June 2, 2015

Websites a Common Place for Advertising Deficiencies

Nearly all investment adviser firms have at least one if not more websites and their prevalence continues to grow, but have you reviewed your investment adviser firm’s website recently? Websites are a great way to advertise your firm’s business and attract new clients, but they can also be a treasure trove for securities regulators.

Website and other advertising deficiencies are commonly cited during routine U.S. Securities and Exchange Commission (“SEC”) and state securities regulatory examinations.   The following are specific examples of common website deficiencies that investment advisers should avoid in order to comply with Rule 206(4)-1 under the Investment Advisers Act of 1940 (“Investment Advisers Act”) and similar state securities rules:

  • Implying the firm is somehow endorsed by the SEC or a state regulatory body;
  • If the investment adviser has multiple entities, failure to clarify what services are offered by the particular entity;
  • Failure to include adequate website disclosure language;
  • Using misleading statements;
  • Using testimonials;
  • Displaying outdated information;
  • Overstating qualifications or experience; and
  • Using language that may be construed as a guarantee.

Investment advisers should familiarize themselves with Rule 206(4)-1, which specifically prohibits any advertisement:

(1) Which refers, directly or indirectly, to any testimonial of any kind concerning the investment adviser or concerning any advice, analysis, report or other service rendered by such investment adviser; or

(2) Which refers, directly or indirectly, to past specific recommendations of such investment adviser which were or would have been profitable to any person: Provided, however, That this shall not prohibit an advertisement which sets out or offers to furnish a list of all recommendations made by such investment adviser within the immediately preceding period of not less than one year if such advertisement, and such list if it is furnished separately: (i) State the name of each such security recommended, the date and nature of each such recommendation (e.g., whether to buy, sell or hold), the market price at that time, the price at which the recommendation was to be acted upon, and the market price of each such security as of the most recent practicable date, and (ii) contain the following cautionary legend on the first page thereof in print or type as large as the largest print or type used in the body or text thereof: “it should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list”; or

(3) Which represents, directly or indirectly, that any graph, chart, formula or other device being offered can in and of itself be used to determine which securities to buy or sell, or when to buy or sell them; or which represents directly or indirectly, that any graph, chart, formula or other device being offered will assist any person in making his own decisions as to which securities to buy, sell, or when to buy or sell them, without prominently disclosing in such advertisement the limitations thereof and the difficulties with respect to its use; or

(4) Which contains any statement to the effect that any report, analysis, or other service will be furnished free or without charge, unless such report, analysis or other service actually is or will be furnished entirely free and without any condition or obligation, directly or indirectly; or

(5) Which contains any untrue statement of a material fact, or which is otherwise false or misleading.

Although regulators do not pre-approve advertising and marketing materials, such materials are always an examination priority and will be eventually reviewed during regulatory examinations.  Because of the scrutiny placed on all advertising, it is extremely important to conduct a compliance review and approve all websites before they go live.  Additionally, changes and revisions to a website need to be reviewed and approved by the firm’s Chief Compliance Officer or his or her designee before changes are formally adopted and made publicly available.  It is important to implement a periodic advertising review program for all website content to avoid displaying outdated content or misinformation.

For purposes of books and record requirements, advertising materials must be retained for a period of five years from the end of the fiscal year in which the advertisement was last used.  If advertising performance, you need to keep records to support data for every year presented in the advertisement. Investment advisers can expect examiners to evaluate their current website as well as any past published advertising material content during the exam period which is typically 18 months to two years.

For more information about advertising and Rule 206 (4) – 1, join us on Thursday June 25, 2015, at 12:00 PM CDT for our webinar “Conducting an Annual Compliance Review – Session 5 – Advertising and Social Media”.  If your investment adviser is looking to stay updated with ongoing compliance review policies and procedures for your investment adviser, you can sign up for our annual subscription to live and recorded webinars through our website.  Also, if your investment adviser would like help conducting a review of its compliance program, we have services available through our online store for compliance tools and services (click here for more information). RIA Compliance Consultants can assist investment advisers with ongoing compliance reviews of advertising and marketing materials. If you are an existing client of RIA Compliance Consultants, please contact your consultant to discuss how we can assist you. If you have not previously worked with RIA Compliance Consultants, please click here to schedule a time to speak with one of our consultants.

Wednesday, May 27, 2015

NASAA’s Model Rule on Business Continuity and Succession Planning for State Registered Advisers – Do You Have Your Business Continuity and Succession Plan Prepared?

The North American Securities Administrators Association, Inc. (“NASAA”) has created a model rule on Business Continuity and Succession Planning (“NASAA Model Rule”) for state registered investment adviser firms.  NASAA’s Model Rule provides guidance to state registered investment advisers when creating Business Continuity and Succession Plans (“BCP”) for their registered investment adviser firms.   The most common purpose of the BCP is to have processes and procedures in place to ensure that critical business functions can continue during and after a disaster or other significant business interruption, whether internal or external.

An investment adviser’s BCP should be customized to the investment adviser’s business model and circumstances. When tailoring the BCP to the specific business, NASAA’s Model Rule requires the investment adviser’s BCP to address the size of the firm, types of services provided, and the number of office locations.  Additionally, the investment adviser’s BCP should include provisions that provide for the back-up of the investment adviser’s books and records; the method that the investment adviser will use to communicate with customers, employees, and regulators in case of a significant business interruption; office relocation in case of damage to or inaccessibility of the current office location; the name of responsible person(s) to act in the event of death or the disability of the investment adviser’s key personnel; and the BCP should contain methods the investment adviser will follow to minimize service interruptions and provide investment advisory clients with access to their funds and securities. One of the key goals for investment advisers when developing their BCP is to limit harm or potential harm to clients.

Planning for an unexpected succession situation is an important part of the BCP.  The necessary succession planning will vary depending on the investment adviser’s business model and the needs of the investment adviser, same as the business continuity planning for disaster recovery.  The succession planning part of an investment adviser’s BCP should be drafted so that it does not conflict with your state’s laws for forming business entities.

The NASAA Model Rule states, “Various states have a state-specific BCP regulatory requirement. State rules may differ from the NASAA Model Rule. Advisers should check with the securities regulators in their home states and with any other states in which they are registered to ascertain specific state requirements.” In order for NASAA’s Model Rule to go into effect in for a particular state, the individual state will need to adopt it but it is highly likely that the majority of states will eventually adopt it. However, it is important to note that NASAA’s Model Rule states, “…states may interpret their regulatory requirements (or an Adviser’s fiduciary duty) to implicitly require BCPs. In the absence of any state-specific requirements, Advisers have a fiduciary duty to have policies and procedures in place that minimize risk to clients and ensure clients’ access to their assets.”

RIA Compliance Consultants strongly recommends that state registered investment advisers review the NASAA Model Rule on Business Continuity and Succession Planning for guidance with making sure the investment adviser has an adequate BCP in place. Investment advisers registered with the U.S. Securities and Exchange Commission (“SEC”) should also have a business continuity and succession plan in place. In the final rule release for Rule 206(4)-7, business continuity plans were included in the list of the minimum issues that should be addressed in an investment adviser’s written supervisory policies and procedures. Additionally, in a December 11, 2014 speech regarding, “Enhancing Risk Monitoring and Regulatory Safeguards for the Asset Management Industry,” SEC Chair Mary Jo White indicated that the SEC staff is developing a recommendation to require investment advisers to create transition plans to prepare for a major disruption in the investment adviser’s business, which would include the investment adviser’s dissolution or following the departure of key personnel. RIA Compliance Consultants recommends that all registered investment advisers take a proactive approach to developing business continuity and succession plans since it appears that at some point these will be a requirement for all investment advisers.

RIA Compliance Consultants can assist investment advisers with preparing and tailoring a BCP to conform to the individual investment adviser’s business model and circumstances. If you are an existing client of RIA Compliance Consultants, please contact your consultant to discuss how we can assist you. If you have not previously worked with RIA Compliance Consultants, please click here to schedule a time to speak with one of our consultants.

Sunday, April 26, 2015

RIAs Should Consider SEC’s Online Security Tips for Investors

When cybersecurity is covered in the industry press these days, there often is discussion about its importance but unfortunately a lack of specificity in what steps an investment adviser can take to improve information security and IT practices.  Even the recent cybersecurity exam sweep results of the Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission (“SEC”) are somewhat difficult for investment advisers to interpret and translate into an information security plan; however, the SEC’s Office of Investor Education and Advocacy recently issued a bulletin giving investors tips on protecting their online accounts.  These recommendations to help protect an investor’s online account from fraud appear to RIA Compliance just as applicable to an investment adviser devising its cybersecurity policies and practices.

The SEC’s Investor Bulletin:  Protecting Your Online Brokerage Accounts from Fraud offers the following cybersecurity tips:

  • Pick a “strong” password keep, keep it secure, and change it regularly.
  • Use two-step verification, if available.
  • Use different passwords for different online accounts (i.e., brokerage, banking, retirement, or other similar financial accounts).
  • Avoid using public computers to access your online brokerage account.
  • Use caution with wireless connections.
  • Be extra careful before clicking upon links sent to you.
  • Secure your mobile devices.
  • Regularly check your account statements and trade confirmations.

If you’d like to learn of additional best cybersecurity practices for an investment adviser, please consider purchasing our recent webinars, Cybersecurity for Investment Advisers and Insight into SEC Exam Priorities for 2015.

Saturday, February 7, 2015

SEC Initiates Enforcement Action against an Investment Adviser for Improperly Registering with SEC Based upon Alleged Misrepresentations of Principal Office and Place of Business in Wyoming

To the extent your investment adviser firm claims that its principal office and place of business is located in Wyoming and therefore eligible for registration with U.S. Securities and Exchange Commission (“SEC”) regardless of the amount of assets under management since the State of Wyoming does not register investment advisers, you should pay close attention to a recent SEC administrative proceeding.  The SEC found that the sole investment adviser representative/owner of the investment adviser firm resided in another state where he maintained a home office and operated as his primary base.  The investment adviser representative/owner utilized the Wyoming offices on an infrequent basis and did not generally direct, control or coordinate activities from Wyoming.  Consequently, the SEC found the investment adviser firm violated Section 203A of the Investment Advisers Act of 1940 by improperly registering with the SEC based upon its misrepresentations that the investment adviser firm’s principal office and place of business was in Wyoming.  The SEC ordered the investment adviser to cease and desist, censured the investment adviser firm, fined the investment adviser in the amount of $10,000 and required the investment adviser to establish its principal office and place of business in Wyoming and provide evidence thereof.   

Tuesday, January 13, 2015

SEC’s 2015 Examination Priorities for Investment Advisers

The Office of Compliance Inspections and Examinations (“OCIE”) of the U.S. Securities and Exchange Commission (“SEC”) released its selected 2015 examination priorities for investment advisers, broker-dealers and transfer agents.  Click here to view.

According to the OCIE, areas of focus for investment adviser examinations by the SEC staff include, but not limited to, the following: (a) suitability of fee v. commission accounts for a dually registered investment adviser/broker-dealer; (b) suitability of an investment adviser’s recommendation of a fee structure relative to other fee structures offered by the investment adviser; (c) whether an investment adviser is using improper or misleading practices when recommending  a client rollover assets from an employer-sponsored 401(k) plan to an IRA, especially when they pose greater risks or higher charges; (d) the due diligence conducted, disclosures made and suitability of an investment adviser’s recommendation to invest retirement assets into complex structured products and high yield securities; (e) an investment adviser’s supervision of its branch offices; and (f) an investment adviser’s cybersecurity compliance and controls.

If your investment adviser firm needs assistance in preparing for an SEC examination, please contact us at 877-345-4034.

Monday, January 12, 2015

Deadline Approaching for Filing the Form 13F with the SEC

Is your investment adviser firm required to file quarterly the Form 13F with the SEC?

According to Section 13(f) of the Securities Exchange Act of 1934, an institutional money manager that exercises investment discretion over $100 million of Section 13(f) securities must submit quarterly 13F reports to the U.S. Securities and Exchange Commission (“SEC”). Since a registered investment adviser firm meets the definition of an institutional money manager, it is subject to this rule when the investment adviser firm exercises investment discretion over $100 million of Section 13(f) securities.

Click here for a list of Section 13(f) securities.

An investment adviser firm that does not currently submit Form 13F reports with the SEC needs to verify that it did not exceed the 13(f) discretion threshold of $100 million at any time during the past calendar year. To the extent your investment adviser firm exceeded $100 million of Section 13(f) securities any time during 2014, your investment adviser firm will need to file its first Form 13F within 45 days of end of the calendar year.  Since the 45th day falls on Saturday, February 14, 2015 and Monday, February 16, 2015 is federal holiday, the filing deadline is Tuesday, February 17, 2015. This first Form 13F must report ending values as of December 31, 2014. Your investment adviser firm will then need to submit filings for quarters ending March, June, and September 2015, even if the market value of your Section 13(f) securities falls below the $100 million level.

Finally, current Form 13F filers that exceeded $100 million of discretionary 13(f) securities on the last trading day of at least one month during the year 2014 must also submit their fourth quarter 2014 reports by February 17, 2015.

Tuesday, January 6, 2015

Form ADV Part 1 Annual Amendment

As an investment adviser, your firm is responsible for preparing and filing through the IARD system a Form ADV Part 1 Annual Amendment that must be submitted each year no later than 90 days after your investment adviser firm’s fiscal year end. 

RIA Compliance Consultants is still available to assist your investment adviser firm with preparing and filing your Form ADV Part 1 Annual Amendment. Our consulting fee for this service is $400.  Please click here for more information about this service or to purchase this service and engage RIA Compliance Consultants to assist you with your Form ADV Part 1 Annual Amendment.

Finally, to the extent that you intend to prepare on your investment adviser firm’s own the Form ADV Part 1 Annual Amendment, we recommend that you participate in our upcoming webinar, “Preparing Your Form ADV Annual Amendment” scheduled for January 22, 2015. During this webinar, RIA Compliance Consultants will discuss the items that must be updated as part of the Form ADV Part 1 Annual Amendment. Additionally, we will review some of the common mistakes we see when investment advisers are filing their Form ADV Part 1 Annual Amendments. Finally, we will discuss some of the other amendments and filings that may need to be made with your annual amendment. Please click here to purchase this webinar for only $69.95.

If you have any questions regarding the Form ADV Part 1 Annual Amendment service or any of the other services provided by RIA Compliance Consultants, please contact your consultant if you are an existing client or if you have not previously worked with RIA Compliance Consultants, click here to schedule a time to speak with one of our consultants.

 

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* RIA Compliance Consultants, Inc. ("RCC") is not a law firm and does not provide legal services. A compliance consulting relationship with RCC is not provided those legal and professional protections that normally exist under an attorney-client relationship. For more information, please visit our Disclosures webpage.

The determination to use a third-party compliance services provider is an important decision and should not be based solely upon advertisements or self-proclaimed expertise. A description or indication of limitation of our compliance services does not mean that an agency or board has certified RCC as a specialist or expert in investment advisor compliance. All potential clients are urged to make their own independent investigation and evaluation of RCC.

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