All posts by BDIA Editors

New BD IA Fiduciary Rules Proposed by Nevada

On January 18th, Nevada’s Office of the Secretary of State, Securities Division, released draft regulations pursuant to the amended Nevada financial planner statute.  The proposed new fiduciary rules are open for comment until March 5th.

This Morgan Lewis LawFlash outlines the key provisions in Nevada’s draft regulation and discusses, among other topics, when the regulation would be effective, when fiduciary duty would apply, and what conduct would be considered a fiduciary breach under the proposal.

OCIE and FINRA Set Exam Priorities, FINRA Issues Cybersecurity Tips, and SEC Finds More Undisclosed Conflicts

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

Topics include:

Read the full post here

Write the Best Annual Compliance Program Review EVER!

Many chief compliance officers struggle every year with preparing the annual review and, based on the OCIE’s summary of the most frequently identified exam deficiencies; some are not up to the task.  To help you out, Jaqueline Hummel and Hardin Compliance Consulting LLC suggest the following:

The review should answer these questions:

  • Were recommendations from the prior year’s annual review implemented?
  • Were the firm’s compliance policies and procedures adequate and followed consistently?
  • Are there any operational or compliance risks or weaknesses that need to be addressed?
  • Should any changes be made to the firm’s policies and procedures?

Here’s a basic outline for the report:

  1. Background
  2. Overview of the review process
  3. Identify the Principal Risks addressed through Compliance Policies and Procedures
  4. Business, Industry and Regulatory Developments
  5. Evaluation of the Adequacy and Effectiveness of Compliance Policies and Procedures, and Recommendations

Read her full post here

Investment Adviser Regulatory Review 2018

The SEC’s regulatory actions in 2018 involved few surprises but still managed to challenge investment advisers. In reviewing the SEC’s activity over the past 12 months, Jaqueline Hummel at Hardin Compliance Consulting LLC has identified the top regulatory hot buttons to help firms focus their efforts to update their compliance programs for 2019.

Read her full post here.


Looking to update your compliance program in 2019? 

If so, you’ll want to review these eleven key takeaways from Jaqueline Hummel at Hardin Compliance Consulting LLC.

1. Be ready for the SEC’s scrutiny of conflicts of interest.

2. Confirm your compliance program addresses the most frequent advisory fee and expense compliance issues identified in examinations of investment advisers identified in the SEC’s risk alert

3. Review OCIE’s risk alert: most frequent best execution issues cited in adviser exams and confirm your policies, procedures and practices address the deficiencies cited.

4. Review the risk alert: investment adviser compliance issues related to the cash solicitation rule and make sure your firm has a process in place to comply with the requirements of rule 206(4)-3.

5. Address how electronic messaging is being used for business communications and confirm whether your firm is retaining the required records.

6. Be prepared for examiners continued scrutiny of custody issues.

7. Watch your back.

8. Adopt policies and procedures to protect senior and vulnerable investors.

9. Shore up your cybersecurity policies and procedures.

10. Mutual fund and ETF advisers, and their sub-advisers, should review the risk alert: risk-based examination initiatives focused on registered investment companies and prepare to be examined.

11. Advisers to mutual funds and ETFs should be working on their liquidity risk management programs to comply with investment company act rule 22e-4.


Read the full post here.