There is good news for investment adviser firms located in the United Kingdom (“UK”) desiring to register as an investment adviser firm with the United States Securities and Exchange Commission (“SEC”).
On December 22, 2020, the U.S. Securities and Exchange Commission (“SEC”) announced it has adopted amendments (also known as the “marketing rule”) to its rules under the Investment Advisers Act of 1940 (“Advisers Act”) that govern advertising and cash solicitation activities by investment advisers registered with the SEC. Unlike the proposed amendments, the SEC’s finalized marketing rule addresses both advertising and soliciting under a single rule. Click here to read the SEC’s final rule release for this new marketing rule for investment advisers.
NASAA Reminds RIAs to Contact Regulators Regarding Recent RIA Cybersecurity Incident
January 08, 2021
On January 7, 2021, the North American Securities Administrators Association (NASAA) reminded state-registered investment advisers to report to their primary securities regulator any known issues or concerns related to a recent RIA cybersecurity incident.
SEC’s Investor Advocate Supports Forming ESG Advisory Committee to Recommend ESG Disclosure Standards
January 02, 2021
In its Report on Activities for Fiscal Year 2020, the Office of the Investor Advocate of the U.S. Securities and Exchange Commission (“SEC”) noted that the Commission’s rulemaking agenda failed to address several modernizations sought by investors such as a “coherent framework for the disclosure of environmental, social and governance (ESG) matters that could influence a company’s long-term performance” despite support for such a standardized disclosure format from the SEC’s Investor Advisory Committee.
On December 16 2020, the Office of Compliance Inspections and Examinations (“OCIE”) of the U.S. Securities and Exchange Commission (“SEC”) released a Risk Alert about its assessment of the compliance practices of SEC-registered investment advisers and broker dealers with regard to Rule 13h-1, which was adopted to help the SEC identify and obtain information on certain market participants (referred to as “Large Traders”) that conduct a substantial amount of trading activity as measured by volume or market value, in national market system (“NMS”) securities. In the Risk Alert, OCIE noted that some advisers and broker dealers it examined were unaware of the rule or its specific requirements and, consequently, is encouraging all SEC-registered investment advisers and broker-dealers to review and update their compliance policies and procedures, as needed, to ensure compliance with Rule 13h-1. Click here to read the SEC’s Risk Alert for Large Trader Obligations.
SEC Risk Alert – Investment Adviser Compliance Programs
December 17, 2020
On November 19th 2020, the Office of Compliance Inspections and Examinations (“OCIE”) of the U.S. Securities and Exchange Commission (“SEC”) released a Risk Alert about its assessment of the compliance practices of SEC-registered investment advisers with regard to SEC Rule 206(4)-7 (the “Compliance Rule”) under the Investment Advisers Act of 1940. In its Risk Alert, the SEC noted that Compliance Rule deficiencies are among the most common discovered by OCIE during SEC registered investment adviser examinations. Click here to read the SEC’s Risk Alert for Investment Adviser Compliance Programs.
New York Adopts Investment Adviser Representative Registration Rule
December 07, 2020
In December 2020, the New York Attorney General’s Investor Protection Bureau (IPB) adopted proposed rule changes to 13 N.Y.C.R.R. Part 11. These rule changes require the registration of investment adviser representatives – including principals, supervisors and solicitors for registered investment advisers – through the WebCRD/IARD system beginning February 1, 2021. Prior to the rule change, New York was the only state that did not license investment adviser representatives via the WebCRD/IARD system. Click here to read the final adopted rule.
Upcoming Webinar – Preparing a Compliance Calendar for 2021
December 03, 2020
RIA Compliance consultants is hosting a webinar, “Preparing Your Compliance Calendar for 2021” on Wednesday, December 16, 2020 from 12:00 p.m. to 1:00 p.m. Central. During this webinar, RIA Compliance Consultants and representatives from SmartRIA will discuss a variety of topics related to the ongoing regulatory requirements for registered investment advisers.
Deadline for Receipt of Preliminary Renewal Statement Payments Quickly Approaching
December 03, 2020
The deadline for investment advisers to submit their Preliminary Renewal Statement payment is quickly approaching. FINRA must be in receipt of the full payment listed on the Preliminary Renewal Statement by December 14, 2020. Investment advisers with sufficient funds in their Flex-Funding Account to cover the Preliminary Renewal Statement payment will have funds automatically transferred beginning on December 14, 2020 to the Renewal Account to cover total renewal fees owed. Automatic transfers will be conducted every day after December 14, 2020 until the WEB CRD/IARD shuts down for year-end processing on December 27, 2020. Investment advisers that choose to mail in their payments are advised to do so now to avoid delays and to ensure funds are received by the deadline. If your investment adviser would like assistance with the annual renewal service, click here for more information on or to purchase RIA Compliance Consultants’ IARD Renewal Program and ADV Amendment Service. If you have questions regarding these or any of the other services offered by RIA Compliance Consultants, contact your support person or our business development team at [email protected]
While completing the annual review of its compliance program, an investment adviser should update its self-identification of the risks facing the firm.
