Common Deficiencies of Newly Registered Investment Advisers

April 14, 2023

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) marketingAlthough these findings are based upon examinations of federally registered investment advisers, it’s our experience that newly state registered firms have similar issues.

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Don’t Stop at Form ADV Annual Amendment – Certain States Require Annual Financial Statement

February 07, 2023

Along with updating your Form ADV Annual Amendment, it’s important to remember that many state securities regulators also require state registered investment adviser firms 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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SEC Brings an Enforcement Action Against an Investment Adviser’s Portfolio Manager for Failing to Disclose a Conflict of Interest Caused by Trying to Help His Daughter’s Career

January 20, 2023

The U.S. Securities and Exchange Commission (“SEC”) recently brought an enforcement action against an investment adviser’s  former portfolio manager of a closed-end investment company for allegedly failing to disclose a conflict of interest caused by the portfolio manager’s efforts to help his daughter’s acting career.

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New Sample Endorsement Disclosure & Authorization Forms

November 17, 2022

To help registered investment advisers comply with the SEC’s new marketing rule, RIA Compliance Consultants has released two new sample forms: Advertising – Endorser (Unaffiliated) – Disclosure Form & Advertising – Testimonial/Endorsement (No Compensation) Authorization.

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2023 Preliminary Renewal Statements Available Monday

November 02, 2022

Starting Monday, November 7, 2022, a registered investment adviser firm can access, via its IARD account, its Preliminary Renewal Statement for 2023 renewals. The Preliminary Renewal Statement must be paid, in full, by Monday, December 12, 2022. Depending on your method of payment, it may take at least two days for a payment to post to the IARD account. Because of this, your firm’s payment should arrive at FINRA no later than Wednesday, December 7, 2022, to ensure that funds are posted to your firm’s IARD account by December 12, 2022.

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Annual Renewals of Investment Advisers is Quickly Approaching

October 19, 2022

Now is the time for each registered investment adviser to begin preparations for IARD renewals for the investment adviser firm and its investment adviser representatives. Registered investment advisers must make sure that they always remain properly registered. If you are an SEC registered investment adviser, you must make sure that your investment adviser is notice filed in all required states.  If you are a state registered investment adviser, you must make sure your investment adviser is properly registered in all required states.  Generally, registration or notice filing is required at the firm level if an investment adviser has a place of business in the state or if it exceeds the state’s de minimis exemption.  However, investment advisers must review each state’s notice filing or registration requirements prior to conducting business in a state.  Investment adviser representative licensing is always handled at the state level.  Investment adviser firms must review and determine that all investment adviser representatives are properly licensed prior to conducting business in a state.

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