The Nebraska Department of Banking & Finance recently published proposed revisions to its rules for investment advisers under the Securities Act of Nebraska.
SEC Raises Qualified Client Threshold
September 08, 2021
The U.S. Securities and Exchange Commission (“SEC”) recently finalized revisions to Rule 205-3 under the Investment Advisers Act of 1940, raising the net worth requirements for individuals who are charged performance fees. The SEC increased the threshold requirements for “qualified clients” to account for inflation, as required by the Dodd-Frank Act and section 205(e) of the Advisers Act. The next adjustment for inflation is anticipated in 2026.
Upcoming Webinar – Compliance Risks of Using Wrap-Fee Program
September 03, 2021
On Thursday, September 30, 2021 at 12:00 PM CST, RIA Compliance Consultants will present a live compliance training webinar about the Compliance Risks of Using Wrap-Fee Program. During this webinar our Senior Compliance Consultants will discuss the Division of Examinations (the “Division”) of the U.S. Securities and Exchange Commission (“SEC”) Wrap-Fee Risk Alert about its assessment of investment adviser firms associated with wrap fee programs.
SEC Charges 21 Investment Adviser Firms for Form ADV Part 3 Filing and Delivery Failures
August 02, 2021
The SEC fines Investment Advisers for failing to deliver and file Form CRS, also known as Form ADV Part 3
On July 26, 2021, the Securities and Exchange Commission (“SEC”) announced that 21 investment advisers agreed to settle charges that they failed to file and deliver their CRS Relationship Summary, also known as Form ADV Part 3, to their retail investors. Click here to read the SEC’s full announcement.
Mississippi Adopts IAR Continuing Education Rule
July 29, 2021
Mississippi is the first state to adopt the Model Rule on Investment Adviser Representative Continuing Education (“Model Rule”) published by the North American Securities Administrators Association (“NASAA”) in 2020. Adopted without substantive changes, Mississippi’s new IAR CE rule closely tracks the Model Rule which will simplify compliance for investment adviser representatives registered in multiple states. As states continue to adopt the IAR CE Model Rule, NASAA will update its list of member states that are adopting the Model Rule.
During our July 2021 “RIA Website Accessibility” Webinar, RIA Compliance Consultants, Natalie Hadley, and Greg Rogers from Outlook Business Solutions discussed the importance of the accessibility of investment adviser’s website.
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.
RIA Compliance Connection Agenda Released
July 21, 2021
We have released a tentative agenda for our August 25 and 26 investment adviser compliance conference “RIA Compliance Connection 2021.”
New Guidance on New York IAR Registration
July 14, 2021
The Investor Protection Bureau of the State of New York’s Office of Attorney General recently issued new guidance clarifying the state’s new process for registering investment adviser representatives (“IARs”). This guidance will be of particular interest to new and existing investment adviser representatives seeking registration in New York. Existing investment adviser representatives have until December 2, 2021 to comply with the registration requirement but must submit a Form U4 requesting investment adviser representative registration in New York on or before August 31, 2021.
The Ontario Securities Commission recently published research findings focused on improving investment advisory client participation in designating a trusted emergency contact (referred to in the report as a “trusted contact person” or “TCP”). Although designating a trusted emergency contact is an important tool for investment advisers to protect a senior or vulnerable client’s investments against financial exploitation or losses due to diminished capacity, many clients decline to do so. This new report aims to help investment advisers and broker dealers utilize behavioral science to encourage its senior and vulnerable clients to name a trusted emergency contact. Despite having an intended audience in Canada, the report highlights a number of useful insights and strategies that can be implemented by investment advisers across the United States. To read the full report, click here.