To the extent that your investment adviser firm has a supervised person who has an outside business activity which involves serving on the board of directors of a non-profit entity, there is a risk that the non-profit entity could be under the belief that the supervised person’s activity on the board of directors is being supervised by the investment adviser firm. Consequently, RIA Compliance Consultants has released a new sample form that allows an investment adviser firm to document that the non-profit is not an investment adviser client and supervised person’s role as a member of the non-profit’s board of directors is being performed in his or her personal capacity and not supervised by the investment adviser firm.
An investment adviser firm should discuss with its compliance professionals whether and how this sample form fits into its compliance program.
This new sample form is available at no additional costs to our Annual Compliance Program Clients in the Bronze, Silver, Gold or Platinum packages or can be purchased a la carte for $250 through our online store linked here.
Posted by Grant Parr