- Annual Renewal Program for IARD System
- Blue Sky Filings (Form D. Advisors to private funds should review fund blue sky filings and determine whether any amended or new filings are necessary. Generally, most states require a notice filing (“blue sky filing”) within 15 days of the first sale of interests in a fund, but state laws vary.
- Statement Regarding Independent Public Accountant
- 2022 Preliminary Renewal Statement is due in full.
- Rule 17a-5 Monthly and Fifth FOCUS Part II/IIA Filings
- Supplemental Inventory Schedule (“SIS”)
- Annual Reports for Fiscal Year-End October 31, 2021
- SIPC-3 Certification of Exclusion from Membership
- SIPC-6 Assessment
- SIPC-7 Assessment
- Form N-MFP
Category Archives: Compliance
A Goldfish is the Happiest Animal, A Securities Respondent is Not: Ted Lasso, SEC, FINRA, and DOL Enforcement Actions (October 2021)
From Brian Rubin and Ariana Cheng in this month’s column for NSCP Currents:
During the pandemic, we have had a lot of lows, as well as a few highs. And that’s just in pop culture. For example, who could forget the Tiger King? And the Queen’s Gambit? We’ve had heroes and villains and everything in between. And we’ve had a streaming show starring a knight in shining armor – well, a big mustache, an even bigger heart, and strong Southern accent – providing us with heroes, rules to live by, homespun humor and rules subject to interpretation (see, e.g., “offsides”). No, we’re not talking about securities enforcement and compliance. We’re talking about Ted Lasso, the irrepressible former football coach of the Wichita (Kansas) State Shockers, who ends up coaching the other futbol (a/k/a soccer) for AFC Richmond in England’s Premier League.
Not surprisingly, to anyone who has read our prior compliance and enforcement columns, this month’s NSCP Currents article is inspired by the ever positive, glass-always-half-full Ted Lasso to provide lessons for securities professionals, as well as lessons for the rest of use on how to live better lives. Or, as Ted would say (and, in fact, did say), “the harder you work, the luckier you get.”
DOL Delays Enforcement of Fiduciary Obligations on Rollover Advice; NASAA 2020 Enforcement Trends; FINRA Encourages AML Program Reviews
November Regulatory Updates from Cari Hopsfenperger at Foreside.
Topics include:
- A reminder about the importance of cybersecurity (hygiene, best practices, and vigilance) and to visit CISA (https://www.cisa.gov/cybersecurity-awareness-month) for valuable (and free) resources to help you reduce your exposure to these threats
- NASAA Reports Top Enforcement Trends for 2020: Precious Metals Swindles, Online Investment Scams, Dodgy Private Offerings, and Self-Directed IRA Rip-Offs
- SEC Regional CCO Virtual Outreach
- DOL Agrees to Back Off on Enforcement of Compliance with ERISA Fiduciary Obligations for Rollover Advice until January 31, 2022
- The 2022 Renewal Program is Underway. November marks the beginning of the annual renewal cycle for broker-dealers, registered representatives, investment advisors, and investment advisor representatives (IARs)
FINRA Annual Renewal Overview
IARD Renewal Program Overview - FINRA “Encourages” Members to Consider Updating Their AML Programs
- FINRA, NASAA, and SEC Urge Investors to Establish a Trusted Contact to Increase Investor Protection
- Out of Sight, Out of Mind – Advisor Continued to Charge Clients Fees for No Services After IARs Departed
- “Probability of Human Error is Considerably Higher than That of Machine Error” ~Kenneth Appel
- A Precarious House of Cards and a Royal Flush of Violations
Read more here.
Mississippi Sends IARS Back to School; IARD And CRD Renewal Season Starts; Regulators Provide Tips On Vendor Due Diligence, And Scary Stories From SEC On Conflicts Of Interest
October Regulatory Updates from Cari Hopsfenperger at Foreside.
Topics include:
- Mississippi Adopts Model Rule for investment advisor representative (IAR) Continuing Education
- Mark Your Calendars: The IARD and CRD Renewal Programs Have Begun; Renewal Payments Due December 13, 2021: To get detailed information about the 2022 Annual Renewal Programs, including the complete timeline, payment methods, helpful tips, and FAQs, click the following links:
- Required Reading: FINRA’s and NFA Notices on Vendor Oversight and Due Diligence
- The SEC Finds Advisors Response to Phishing Attacks, a Day Late and a Dollar Short
- Advisor Experiences the Horror of Failure to Supervise Remote IARs
- Firm Principals Pay the Price for Riskless Principal Trades
- New Technology but Same Old Conflicts
- “Keeping it in the Family” is a Bad Compliance Strategy
- The First of Many Cases on Breach of Duty – IAR Fined and Suspended, and RIA is Punished for Failing to Perform Suitability Analysis
SEC SCHOOLS ADVISORS ON BEST INTEREST OBLIGATIONS; “TO DO” LIST FOR FIXED INCOME PRINCIPAL AND CROSS TRADES; COMPLEX PRODUCT AND FORM CRS FAILS
September Regulatory Updates from Cari Hopsfenperger at Foreside.
Topics include:
- SEC Tells Advisors How to Manage Retail Accounts
- Risk Alert – Observations Regarding Fixed Income Principal and Cross Trades by Investment Advisors from An Examination Initiative
- Attention FinOps: FINRA Updates Interpretations of Financial and Operational Rules
- FINRA Adopts New Rule Addressing the Operation of Inter-dealer Quotation Systems
- When Products are This Complicated, Training is Not Enough
- A Day (or a Year) Late and a Dollar Short – SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Issues
- Three Blind Mice – The Latest Trio of Share Class Selection Disclosure Cases
- Classic Example of Suitability Violations Involving Structured Products