Summary of SEC’s Finalized Private Fund Adviser Rules

September 19, 2023

Regulatory Alert

The United States Securities and Exchange Commission (“SEC”) recently issued a final set of rule amendments under the Investment Advisers Act of 1940, primarily aimed at enhancing the regulatory framework governing investment advisers to private funds. The new set of rules, as described in SEC Release No. IA-6383, is designed to protect investors who invest directly or indirectly in private funds. It focuses on increasing transparency in compensation arrangements and prohibiting conflicted arrangements involving private funds. Through an audited financial statement requirement, the new rules also aim to prevent fraudulent activities by registered investment advisers advising private funds. Finally, this set of new rules includes an amendment requiring all SEC-registered investment advisers to document in writing the annual review of their compliance policies and procedures.

Key Takeaways from NASAA’s 2023 Investment Adviser Coordinated Exam

September 15, 2023

Introduction

The North American Securities Administrators Association (“NASAA”) recently released its 2023 Investment Adviser Coordinated Exam findings. The report provides valuable insights and empirical data with respect to the most common deficiencies found during 683 routine examinations of state-registered investment advisers located throughout the U.S. and conducted from January 1 to July 31, 2023.

SEC Provides Investment Advisers with Insights on Examination Process

September 07, 2023

The Division of Examinations of the United States Securities and Exchange Commission (“SEC”) recently issued a Risk Alert dated September 6, 2023, that provides valuable insights into the examination process for investment advisers. This Risk Alert serves as a guide on how the SEC identifies investment advisers for examinations and the documents and information requested. Notably, it includes a separate attachment titled “Typical Initial Information Examiners Request of Investment Advisers” which is a helpful resource for investment advisers to understand what to expect during an SEC examination.

SEC Is Now Requiring An Investment Adviser to Document Annual Compliance Review In Writing

August 25, 2023

New Sample Form – Annual Review – Certification of Annual Retrospective Review of IRA Rollover

February 21, 2023

RIA Compliance Consultants has released a new sample form, Annual Review – Certification of Annual Retrospective Review of IRA Rollover.

SEC Issues Investment Adviser Exam Priorities for 2023

February 16, 2023

SEC Requires RIAs to Complete Risk Assessment as Part of Annual Compliance Review

December 02, 2020

While completing the annual review of its compliance program, an investment adviser should update its self-identification of the risks facing the firm.

Financial Exploitation of Elderly and Vulnerable Clients

September 06, 2017

An investment adviser firm and its investment adviser representatives are uniquely placed to spot signs of financial exploitation that may be happening to their investment advisory clients. An investment adviser representative is often on the front lines of a client’s finances and becomes quite familiar with a client’s habits, preferences, and personal situation. This knowledge can help the investment adviser representative spot unusual patterns and suspicious requests, whether made directly by the client or by a third party.

Preliminary Renewal Statements Available Monday

November 12, 2015

Starting Monday, November 16, 2015, a registered investment adviser firm can access, via its Investment Adviser Registration Depository (IARD) account, its Preliminary Renewal Statement for 2016 renewals. The Preliminary Renewal Statement must be paid, in full, by Friday, December 18, 2015. Since it takes approximately two (2) days for a payment to post to the IARD account, your firm’s payment should arrive at the Financial Industry Regulatory Authority (FINRA) no later than Wednesday, December 16, 2015, to ensure that funds are posted to your firm’s IARD account by Friday, December 18, 2015.

Investment Advisers Should Begin Preparations for 2016 Renewals

October 29, 2015

As annual renewal season rapidly approaches, investment advisers should be proactive and begin preparing for renewals by reviewing to make sure the investment advisor is properly registered or notice filed, as applicable, and that its investment adviser representatives are properly licensed with all required state securities regulators. The IARD Renewal Program serves to facilitate the annual renewal of investment advisers and their investment adviser representatives’ registrations with the appropriate state securities regulators. Although, an investment adviser’s registration, notice filing, and licensing requirements is something that should be reviewed and monitored on an ongoing basis, during the annual renewal process all investment advisers should review their existing registration or notice filing status and each investment adviser representative’s licensing status to confirm that the investment adviser and its representatives are properly registered, notice filed, or licensed (as applicable). Additionally, all state registered investment advisers should also review the state requirements to see if branch office registration is required and, if it is, investment advisers should confirm that all branch office locations have been properly registered.