On February 4, 2022, the United States Treasury Department released a report that indicated non-fungible tokens (“NFTs”), currently, one of the trendiest cryptocurrency structures, may become a new avenue for money launderers and other nefarious ne’er do wells. Those interested in offering NFTs to the public may, ultimately, be required to inquire as to the purchasers of their NFTs. However, in the meantime and in consultation with securities counsel, it may not be a bad idea to start knowing who your customer is now.
Category Archives: Standard of Care
SEC Charges Advisor and Dual-Hatted CCO Over Inadequate Disclosures About Fee Mark-Ups; Form CRS Violations Continue; Compliance Professional Development and Leadership Inspiration; Lessons Learned and Worth Reading for December 2021
Lessons Learned
- The War on “May” Continues: SEC Charges Advisor and Dual-Hatted CCO Over Inadequate Disclosures About Fee Mark-Ups
- Form CRS Violations Continue. The SEC recently fined two more advisors for Form CRS violations similar to 27 enforcement actions brought against broker-dealers and advisors in July.
Worth Reading, Watching, and Hearing
- SEC Pulls Years of No Action Letters Replaced by Marketing Rule.
- Cybersecurity: Meeting the Emerging Challenge.
- How to Nail Your Executive Presentation – 5 Best Practices to Gain Leadership Support
- Ted Lasso Is Reinventing Leadership and Proving That Nice Leaders Can (and Should) Finish First
- Finding Your Career Path in Compliance
SEC Withdraws No-Action Letters Related to Marketing Rule; Risk Alert Highlights Findings from Investment Company Examinations;
December Regulatory Updates from Cari Hopsfenperger at Foreside.
Topics include:
- SEC Withdraws Several No-Action Letters related to Marketing Rule.
- 2021 Compliance Outreach Program Regional Seminars for Investment Advisor and Investment Company Senior Officers.
- Risk Alert – Observations from Examinations in the Registered Investment Company Initiatives
- The Renewal Process Continues
- FINRA Annual Renewal Overview
- IARD Renewal Program Overview
Filing Deadlines and To-Do List for December 2021
- 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
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.