SEC Regulation Best Interest: Five concrete steps for compliance

On June 5, the U.S. Securities and Exchange Commission (SEC) approved its highly anticipated package of rulemakings and interpretive guidance relating to the standards of care applicable to financial professionals when making recommendations and providing investment advice to retail investors.

Included in this package was the SEC’s new Regulation Best Interest, which will likely require transformative changes for much of the retail brokerage industry.

With an effective date of June 30, 2020, what concrete steps should broker-dealers consider taking as they work toward compliance by the deadline?

Read more here.

The Top Ten Features to Look for in a Compliance Program Management System

For a compliance officer, finding the right software to manage the compliance program is tough.  The initial ask is to find an affordable system that can automate manual processes, allow collaboration and oversight between compliance staff and supervised persons, record compliance testing and monitor results, send reminders when deadlines are looming, and preserve the integrity of your records by incorporating an audit trail.  The system should be easy to use, administer and customize.

Current “software as a service” offerings provide affordable, customizable programs that can be used by all types of registered investment advisers, including private equity and hedge fund managers, retail advisers and institutional asset managers.

Read my top ten considerations in selecting a compliance program management system here.

Fee-Based Annuities Get a Boost, More Resources on Reg BI and Form CRS, States get Tough on Crypto Scams, SEC Speaks on Proxy Voting, Gets Tough to Protect Vulnerable Adults and Drops the Other Shoe on Revenue Sharing

September Regulatory Updates from Jaqueline Hummel at Hardin Compliance Consulting LLC.

Topics include:

Read the full post here

SEC issues guidance regarding proxy voting responsibilities of IAs

On August 21, 2019, in a 3-2 vote, the SEC voted in favor of publishing guidance regarding the proxy voting responsibilities of investment advisers. The guidance, structured in a question-and-answer format, provides examples to help facilitate IAs’ compliance with their proxy voting responsibilities under the Investment Advisers Act of 1940, as amended (Advisers Act), and Rule 206(4)-6 thereunder. Importantly, the SEC encourages IAs and proxy advisory firms (PAFs) to review their policies and practices before next year’s proxy season to ensure they are consistent with the guidance.

 

Read more here.

Here’s looking at you, FINRA — Extraordinary Cooperation and Self-Reporting

On July 11, 2019, the Financial Industry Regulatory Authority released Regulatory Notice 19-23, providing new guidance on what constitutes “extraordinary cooperation” in FINRA investigations, and what credit FINRA may give to broker-dealers or individuals. How will this guidance affect firms that self-report violations under FINRA Rule 4530(b)?

Read more here.