Investment Advisers Should Begin Preparations for 2021 Renewals

October 14, 2020

As annual renewal season rapidly approaches, investment advisers should be proactive and begin preparing for renewals by reviewing to make sure the investment adviser 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 are some things 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.

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SEC Charges Investment Adviser Rep with Cherry Picking Profitable Trades for Personal Account

October 12, 2020

On September 28, 2020, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint against an investment adviser representative located in Nebraska for allegedly cherry picking profitable trades for his personal investment account, while disproportionately assigning unprofitable trades to investment advisory client accounts. During the alleged scheme, which ran from January 2017 to March 2018, the SEC asserts that the investment adviser representative earned a 4.4% return on his personal investment account while his disfavored clients earned a negative 12.56% return. Click here to read the SEC’s complaint.

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SEC Reschedules its Compliance Outreach Program’s National Seminar

October 08, 2020

On Wednesday, October 7, 2020, the Securities and Exchange Commission (SEC) announced it has rescheduled its compliance outreach program’s national seminar for investment advisers to Nov. 19, 2020. The SEC intends for its compliance outreach program to help Chief Compliance Officers (CCOs) and compliance personnel enhance their compliance programs for the protection of investors. The November 19 program will be offered as a live webcast.

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Upcoming Webinar – Best Practices to Reduce the Risk of Arbitration and Litigation

October 07, 2020

On Thursday, October 22, 2020 at 12:00 PM CDT, RIA Compliance Consultants, Inc. will host a compliance training webinar entitled, “Best Practices to Reduce the Risk of Arbitration and Litigation.” RCC is excited to have representatives from Unitifi and Lockton Affinity serve as panelists on this webinar. Patrick Griffin, an attorney from Kutak Rock, will also serve as a panelist during this discussion.

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Investment Advisers Disclosing Disciplinary Events on Form ADV Part 3

September 22, 2020

Intended to be a concise and easily understandable disclosure for retail investors, the United States Securities and Exchange Commission (“SEC”) implemented the Form CRS/Form ADV Part 3 relationship summary to help SEC registered investment advisers provide information to their retail investor clients about the relationships and services the investment adviser firm offers, fees and costs that retail investors will pay, specified conflicts of interest and standards of conduct, and disciplinary history.  To learn more about the SEC’s requirements of Form CRS/Form ADV Part 3, please see our website page at .

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Compliance Concerns for Private Funds

September 15, 2020

On Thursday, September 24 RIA Compliance Consultants will host a webinar, “Compliance Concerns for Private Funds,” at 12:00 PM CT. During this compliance training webinar, RCC’s Senior Vice-President, Jarrod James, will be joined by Dan McMahon of Koley Jessen to discuss the SEC’s recent Risk Alert entitled SEC’s Observations from Examinations of Investment Advisers Managing Private Funds. We will also discuss the key differences between an Exempt Reporting Adviser filing (ERA) for private fund advisers and full registration as an investment adviser along with the private fund information both filing-types must provide on Form ADV.

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NASAA Seeks Input on Investment Adviser Representative Continuing Education Program

September 05, 2020

The North American Securities Administrators Association, Inc. (“NASAA”) is currently seeking input from NASAA members (i.e., state and provincial securities regulators) and other industry professionals, including registered investment advisers and their representatives regarding potential content for classes in its proposed investment adviser representative continuing education program. NASAA intends to utilize survey responses for design and implementation of the proposed IAR continuing education program.

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2020 Compliance Professional of the Year

September 01, 2020

RIA Compliance Consultants is pleased to announce Anthony Woodard as the winner of our 2020 Compliance Professional of the Year! Anthony serves as the Chief Compliance Officer for Prime Capital Investment Advisors, LLC (PCIA). As CCO, his primary objectives are to ensure that PCIA is in compliance with industry regulations, to assess the firm’s exposure to risk, and to create and administer policies that effectively address such risks.

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SEC Enforcement Action Against an Investment Adviser Over Limiting Wrap to NTF Funds

August 31, 2020

On July 28, 2020, the United States Securities and Exchange Commission (“SEC”) filed an order instituting an enforcement action/administrative cease-and-desist proceeding against an SEC registered investment adviser firm for allegedly failing to disclose material conflicts of interest related to its mutual fund share class selection practices, receipt of revenue sharing, avoidance of transaction fees, receipt of compensation pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”), and failure to seek best execution.

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SEC Issues Cease and Desist Order Against Dual BD/RIA for Revenue Sharing on Money Market Cash Sweep

August 24, 2020

On August 13, 2020 the United States Securities and Exchange Commission (“SEC”) filed an order instituting administrative cease-and-desist proceedings to a dually registered investment adviser firm/introducing broker-dealer firm for allegedly failing to disclose material conflicts of interest related to its mutual fund share class selection practices, receipt of compensation pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”), and money market revenue sharing agreements.

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