From our friends at Hardin Compliance Consulting LLC, helpful guidance for broker dealers and RIAs, as they plan their return:
June Regulatory Updates from Cari Hopsfenperger at Hardin Compliance Consulting LLC.
Topics include:
On March 25, 2020 the SEC issued several exemptive orders to extend temporary COVID-19 relief.
· The relief further extends the filing periods covered by its previously enacted conditional reporting relief for certain public company filing obligations.
· The relief further extends regulatory relief previously provided to funds and investment advisers whose operations may be affected by COVID-19.
· The SEC and its staff also provided public company disclosure guidance.
On March 13, 2020, the Securities and Exchange Commission (SEC) issued a temporary order (the Order) providing conditional exemptive relief to investment advisers registered with the SEC (RIAs) and exempt reporting advisers (ERAs) with respect to certain filing, delivery and reporting requirements under the Investment Advisers Act of 1940, as amended (the Advisers Act) due to disruptions and limitations caused by coronavirus disease 2019 (COVID-19). The Order provides impacted firms with conditional exemptive relief from these filing, delivery and reporting requirements in the form of an extension of up to 45 days from the originally required due date. RIAs or ERAs with filing, delivery or reporting obligations between March 13, 2020, and April 30, 2020 (the Period) may rely on the Order. The SEC noted it may extend the Order past April 30 and may issue other relief if warranted in the future.
To rely on the Order, RIAs and ERAs must satisfy the Order’s specified conditions. Detailed here.
FINRA’s examination program has undergone its most significant reorganization in decades. As stated in this press release, FINRA’s goal for the reorganization was to “consolidate its Examination and Risk Monitoring Programs, integrating three separate programs into a single, unified program to drive more effective oversight and greater consistency, eliminate duplication and create a single point of accountability for the examination of firms.” The new look of the examination program was released, along with new management, on Dec. 12, 2019.
For 2020, FINRA is prioritizing risk monitoring, surveillance, and examination programs to further its mission of investor protection and market integrity. The examination priorities are organized around four themes, which build on FINRA’s priorities from prior years: Sales practice and supervision; Market integrity; Financial management; and Firm operations.
Additional contributors to this post:
Emily Gordy, egordy@mcguirewoods.com
Anitra T. Cassas, acassas@mcguirewoods.com
Molly M. White, mwhite@mcguirewoods.com
Piper A. Waldron, pwaldron@mcguirewoods.com