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.

Broker-Dealer 2018 Regulatory Year in Review

Jaqueline Hummel at Hardin Compliance Consulting LLC has shared Hardin’s list of rules, enforcement actions and regulatory developments for broker-dealers from 2018.

Highlights include:

2018 New & Amended Rules

2018 Notable Regulatory Enforcement Actions

2018 Cryptocurrency Developments

2018 Notable Regulatory Announcements

2019 Upcoming Rule Amendments

Read the full post here.

 

 

 

2019 Regulatory Deadlines for Broker-Dealers and Investment Advisers — Monthly Guides

To help compliance officers plan their regulatory calendars for 2019, we are pleased to share Hardin Compliance Consulting’s lists of regulatory requirements for Broker-Dealers and Investment Advisers.  While not intended to be exhaustive, it does provide a monthly “to do” list to assist you in planning for the year ahead . . .

BD Monthly Guide

IA Monthly Guide

Now if we could just find someone to do this for the other aspects of our lives. . .

 

OMG! SEC Gives Tips on IM and Texting, More Advisers Caught in 12b-1 Fee Scandal, and Lessons Learned from FINRA Exams

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

Topics include:

Read the full post here

The Real Nightmare Before Christmas: SEC Gets Tough on Firms that Did Not Self-Report during SCSD Initiative

The SEC’s Enforcement Division is following up on the Share Class Selection Disclosure Initiative (the “SCSD Initiative”) by sending out document requests to dually-registered investment advisers and investment advisers with broker-dealer affiliates that did not self-report.  The focus of this sweep is 12b-1 fees and revenue sharing and requires advisers to review their records going back to 2013.

Similar to the questionnaire from SCSD Initiative, the Enforcement Division is asking for disclosure about the aggregate amount of 12b-1 fees received by firms and their affiliates and the amount of 12b-1 fees charged to clients over the past five years.  The division may also ask firms to perform an analysis of all available share classes of the mutual funds purchased for client accounts to determine the amount of 12b-1 fees (if any) that the adviser’s clients would have incurred if they had been invested in the lowest-cost share class available.  This analysis can be a nightmare of data-gathering for firms, depending on the number of mutual funds used in client accounts.

Read the full post here