Social Dilemma: SEC Edition

With recent increase in the usage of electronic communication, we thought it necessary to touch on what the SEC is focusing their attention on. RIAs use various forms of electronic communication and its important to remember to comply with the Investment Advisers Act. There are certain obligations when personnel engage in electronic messaging. Here are […]

Now your advisors are working from home. So, have you reviewed their remote/branch office?

As more aggregation takes place in the industry, more firms are supervising advisors located throughout the country.  With the pandemic, this trend has only expanded leaving the operations of the business to be conducted nationwide. The SEC has been reviewing this trend with great interest and growing concern. It has put in place initiatives  to look at RIAs that are […]

COVID-19 Brings Risks – and we aren’t talking Health Risks

Advisers registered with the SEC have faced several challenges through the Coronavirus pandemic. These have come operationally, technologically, commercially, and so on. The OCIE has put forth great efforts to continue operating as normal through this time and have worked to make sure that advisers could work in normal operational procedures without major disruptions. The […]

Let the Exams Continue..

The Securities and Exchange Commission has created the Event and Emerging Risks Examination Team (EERT) in the Office of Compliance Inspections and Examinations (OCIE). The EERT will work with financial firms on emerging threats and current market events and will be utilized for their expertise and resources by the SEC’s regional offices when critical matters come […]

“Law without penalty is advice.”

The Securities and Exchange Commission recently announced that Interactive Brokers LLC will pay an $11.5 million penalty to settle charges it repeatedly failed to file Suspicious Activity Reports (SARs) for U.S. microcap securities trades it executed on behalf of its customers. FINRA and CFTC also announced settlements with Interactive Brokers related to anti-money laundering failures […]

SEC Adopts Amendments to Procedures for Exemptive Relief

The SEC is frequently receiving applications for exemptions or other relief for funds. These exceptions provide important economic benefits to funds and their shareholders, encourage financial innovation, and increase the variety of opportunities for investors.  So on July 6, 2020 the SEC adopted amendments to the Exemptive Applications procedures. This will help create a quicker […]

40 Years Without Change to Form 13F. Overdue? Absolutely!

On July 10th, the SEC proposed changes to Form 13F to update the threshold for institutional investment managers and make other targeted changes. The form originated in 1978 to collect data from larger managers about their investment activities and holdings, so that their influence and impact could be considered in maintaining fair and orderly securities […]

What are you missing in your management of Private Funds?

The OCIE is frequently asked about their findings in the examination process of RIAs that manage private equity funds or hedge funds. These deficiencies they discover may have caused investors to pay higher fees and expenses or caused them not to be informed of conflicts of interest concerning the adviser and fund. Here are some […]

Update: SEC Rule Change Proposal!

The U.S. Securities and Exchange Commission (the “Commission”) recently published a series of proposed rule changes, including a change to the “accredited investor status” verification requirement under Rule 506(c) of Regulation D. My RIA Lawyer responded to the proposal on behalf of our private fund clients. Please read our full comment letter to the Commission […]

What violations are catching FINRA’s attention?

Quarantine doesn’t slow down suitability violations. FINRA is consistent in their review of unsuitable recommendations. Despite this being a hot topic for FINRA and all the cases they consistently have, there are violations happening at an alarming rate. Here are the main points to consider:   1: Review your WSPs for suitability and make sure […]