In a recent Risk Alert by U.S. Securities and Exchange Commission (“SEC”), the Examination Division identified several common issues among newly registered investment advisers (also referred as RIAs): (1) compliance policies and procedures; (2) disclosures and filings; and (3) marketing. Although these findings are based upon examinations of federally registered investment advisers, it’s our experience that newly state registered firms have similar issues.
Category Archives: SEC Inspection
SEC Issues Investment Adviser Exam Priorities for 2023
February 16, 2023
SEC Risk Alert – Wrap Fee Programs
July 26, 2021
SEC Risk Alert on Use of Wrap Fee Accounts by Investment Advisers
On July 21, 2021, the Division of Examinations (the “Division”) of the U.S. Securities and Exchange Commission (“SEC”) released a Risk Alert about its assessment of investment adviser firms associated with wrap fee programs.
The SEC identified multiple areas where the investment advisers examined were deficient in their policies, procedures, and practices related to wrap fee programs, and further noted a range of industry practices that investment advisers might consider adopting to meet their fiduciary duty when recommending and managing wrap fee programs.
SEC Is Focusing on ESG Investing by RIAs
March 05, 2021
The United States Securities and Exchange Commission (“SEC”) made it abundantly clear this week that it will be focusing (i.e., exams and enforcement actions) on ESG investing by investment advisers firms (“RIAs”).
SEC Exam Priorities for Investment Advisers Managing Digital Assets
February 27, 2021
SEC Risk Alert
SEC Announces 2020 Exam Priorities
January 16, 2020
On January 7, 2020, the Securities and Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) released its 2020 Examinations Priorities for SEC registered investment advisers. After completing over 3,089 investment adviser examinations in 2019, the SEC outlined several themes for the focus of investment adviser examinations which include the following:
RIA Compliance Consultants is offering two investment advisor compliance webinars in January. On Thursday, January 16, 2020, Bryan Hill, the president of RCC hosted, “SEC’s 2020 Exam Priorities for Investment Advisers,” A recording of this one our webinar can be purchased through the following link “SEC’s 2020 Exam Priorities for Investment Advisers”.
SEC Continues to Focus on Cybersecurity for Investment Advisers
August 02, 2016
As in 2015, the Securities and Exchange Commission (“SEC”) Examination Priorities for 2016 identify cybersecurity as an area of “potentially heightened [market-wide] risk.” Citing the Office of Compliance Inspections and Examinations (“OCIE”) 2015 Risk Alert, the SEC promised to continue using its exams to evaluate investment adviser firms’ cybersecurity preparedness. Click here to read our blog on the OCIE Cybersecurity Risk Alert.
SEC’s 2015 Examination Priorities for Investment Advisers
January 13, 2015
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.
SEC Examination Focus on Investment Adviser “Dual Registrants”
August 19, 2014
Earlier this year the Securities and Exchange Commission (“SEC”) National Exam Program (“NEP”) published its Examinations Priorities for 2014. “Dual Registrants” was listed as one of the most significant initiatives across the entire NEP. This is the second year in a row that the NEP has referenced dually registered investment advisers and broker-dealers in its published examination priorities. This focus does not only apply to firms that have both a broker-dealer registration and an investment adviser registration but it extends to any investment adviser firm whose representatives are also licensed as representatives with a broker-dealer. The 2014 release indicates that, “The convergence among broker-dealer and investment adviser representative activity continues to be a significant risk. For example, representatives of dual registrants, i.e., registrants that are both broker-dealers and investment advisers, and affiliated advisers and broker-dealers may influence whether a customer establishes a brokerage or investment advisory account. This influence may create a risk that customers are placed in an inappropriate account type that increases revenue to the firm and may not provide a corresponding benefit to the customer.”
