As your state registered investment adviser firm completes its Form ADV Annual Amendment, it’s important not to forget that many state securities regulators also require a state registered investment adviser firm to submit annual financial statements and/or other documents (e.g., proof of continued coverage of a surety bond, investment advisory client agreement if material changes) directly to the state securities regulator (outside of the IARD/CRD system).
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In light of the new investment adviser representative (“IAR”) licensing requirement of the State of New York, RIA Compliance Consultants has updated its sample compliance manual section for investment adviser representative licensing in New York.
NASAA Investment Adviser Representatives Continuing Education Model Rule Moves Closer to Implementation
January 26, 2021
The North American Securities Administrators Association (“NASAA”) recently announced an updated timeline for the implementation of its Model Rule on Investment Adviser Representative Continuing Education (“Model Rule”). Adopted on November 24, 2020, the Model Rule provides a framework for requiring investment adviser representatives registered with a state securities regulator to complete twelve hours of continuing education each calendar year. To read the Model Rule on Investment Adviser Representative Continuing Education, click here.
On December 22, 2020, the U.S. Securities and Exchange Commission (“SEC”) announced it has adopted amendments (also known as the “marketing rule”) to its rules under the Investment Advisers Act of 1940 (“Advisers Act”) that govern advertising and cash solicitation activities by investment advisers registered with the SEC. Unlike the proposed amendments, the SEC’s finalized marketing rule addresses both advertising and soliciting under a single rule. Click here to read the SEC’s final rule release for this new marketing rule for investment advisers.
NASAA Reminds RIAs to Contact Regulators Regarding Recent RIA Cybersecurity Incident
January 08, 2021
On January 7, 2021, the North American Securities Administrators Association (NASAA) reminded state-registered investment advisers to report to their primary securities regulator any known issues or concerns related to a recent RIA cybersecurity incident.
On December 16 2020, the Office of Compliance Inspections and Examinations (“OCIE”) of the U.S. Securities and Exchange Commission (“SEC”) released a Risk Alert about its assessment of the compliance practices of SEC-registered investment advisers and broker dealers with regard to Rule 13h-1, which was adopted to help the SEC identify and obtain information on certain market participants (referred to as “Large Traders”) that conduct a substantial amount of trading activity as measured by volume or market value, in national market system (“NMS”) securities. In the Risk Alert, OCIE noted that some advisers and broker dealers it examined were unaware of the rule or its specific requirements and, consequently, is encouraging all SEC-registered investment advisers and broker-dealers to review and update their compliance policies and procedures, as needed, to ensure compliance with Rule 13h-1. Click here to read the SEC’s Risk Alert for Large Trader Obligations.
SEC Risk Alert – Investment Adviser Compliance Programs
December 17, 2020
On November 19th 2020, the Office of Compliance Inspections and Examinations (“OCIE”) of the U.S. Securities and Exchange Commission (“SEC”) released a Risk Alert about its assessment of the compliance practices of SEC-registered investment advisers with regard to SEC Rule 206(4)-7 (the “Compliance Rule”) under the Investment Advisers Act of 1940. In its Risk Alert, the SEC noted that Compliance Rule deficiencies are among the most common discovered by OCIE during SEC registered investment adviser examinations. Click here to read the SEC’s Risk Alert for Investment Adviser Compliance Programs.
New York Adopts Investment Adviser Representative Registration Rule
December 07, 2020
In December 2020, the New York Attorney General’s Investor Protection Bureau (IPB) adopted proposed rule changes to 13 N.Y.C.R.R. Part 11. These rule changes require the registration of investment adviser representatives – including principals, supervisors and solicitors for registered investment advisers – through the WebCRD/IARD system beginning February 1, 2021. Prior to the rule change, New York was the only state that did not license investment adviser representatives via the WebCRD/IARD system. Click here to read the final adopted rule.
Upcoming Webinar – Preparing a Compliance Calendar for 2021
December 03, 2020
RIA Compliance consultants is hosting a webinar, “Preparing Your Compliance Calendar for 2021” on Wednesday, December 16, 2020 from 12:00 p.m. to 1:00 p.m. Central. During this webinar, RIA Compliance Consultants and representatives from SmartRIA will discuss a variety of topics related to the ongoing regulatory requirements for registered investment advisers.
Deadline for Receipt of Preliminary Renewal Statement Payments Quickly Approaching
December 03, 2020
The deadline for investment advisers to submit their Preliminary Renewal Statement payment is quickly approaching. FINRA must be in receipt of the full payment listed on the Preliminary Renewal Statement by December 14, 2020. Investment advisers with sufficient funds in their Flex-Funding Account to cover the Preliminary Renewal Statement payment will have funds automatically transferred beginning on December 14, 2020 to the Renewal Account to cover total renewal fees owed. Automatic transfers will be conducted every day after December 14, 2020 until the WEB CRD/IARD shuts down for year-end processing on December 27, 2020. Investment advisers that choose to mail in their payments are advised to do so now to avoid delays and to ensure funds are received by the deadline. If your investment adviser would like assistance with the annual renewal service, click here for more information on or to purchase RIA Compliance Consultants’ IARD Renewal Program and ADV Amendment Service. If you have questions regarding these or any of the other services offered by RIA Compliance Consultants, contact your support person or our business development team at [email protected]
