You open your inbox, ready to start your day, and what’s the first thing that greets you? A notice that you’re being examined from the SEC’s Division of Examinations (EXAMS), along with an initial request list for information. Time to panic? Of course not. Being examined by the SEC, and other regulatory authorities, is an
If You Build It, They Will Come – Be Ready for SEC Exams
So you’ve built your robo-adviser, registered it, hired and licensed personnel, implemented a compliance program, conducted a successful marketing campaign, and (finally) gotten to do what you’ve really wanted to do the whole time – advise clients and manage portfolios. Startup woes seem a thing of the past, and your operation is running smoothly.
Then,
Cautionary Tales for Chief Compliance Officers
For nearly a decade now, regulators have placed the Chief Compliance Officer (“CCO”) squarely within the sights of enforcement, on the logic that holding CCO’s individually liable for violations would prompt robust compliance programs, and deter lackluster supervision. The reasonableness of such assumptions is a topic for a different post. However, despite these drastically raised the stakes
Maintaining Effective Access Rights and Controls in Your Organization
You probably don’t need to be convinced that information security is critically important. But just in case you do, you should know that the U.S. Securities and Exchange Commission (SEC) continues to emphasize the importance it places on information security. In our last two posts, Marc and Craig began our discussion of the SEC’s Division
Managing Cybersecurity and Privacy Risks in Vendor Engagements
As Marc mentioned last time, the SEC’s Division of Examinations’ (EXAMS) has made it a priority in 2021 to review the steps that firms take to ensure information security and operational resiliency. For robo-advisers, given that they conduct so much of their operations online, these steps are of paramount importance.
In its report, EXAMS
Governance and risk considerations for information security and operational resilience
We continue our discussion of the SEC’s Division of Examinations’ (EXAMS) 2021 Priorities (see here) with an overview of information security and operational resiliency. The daily drumbeat of cyber-intrusion incidents is certain to keep cybersecurity at the top of EXAMS’ focus.
In light of the pandemic forcing a shift to remote work,
ESG Investing – Sustainable Compliance for Sustainable Investing
The market for investment products and services is very competitive. Consumers now look to their advisers to not only provide return on their investment but to do so in a way that is consistent with their personal ethos. To meet this demand, many investment advisers have turned to incorporating environmental, social, and governance (“ESG”) factors
Building Your Clients’ Portfolios – EXAMS Highlights Concerns for Mutual Funds and ETFs
Robo-advisory firms often build client portfolios with exchange-traded funds (ETFs) and mutual funds. This makes practical sense – these instruments allow advisers to efficiently meet a wide range of client investment objectives. Nevertheless, as mentioned in our last post, the SEC’s Division of Exams (EXAMS) has made it a priority this year to focus
Confused By The Signs? SEC Publishes Annual Guide to Examination Priorities
Our recent posts have walked you through the SEC’s new marketing rule and discussed valuation and fee assessment. Now, with the ADV season, hopefully, in your rear-view mirror, we turn your attention to planning for the remainder of the year. Determining the most efficient use of a compliance department’s time and resources is essential. Fortunately,
Valuation and Fee Assessment – What Your Compliance Program Needs to Have
Over the last three posts to the blog (overview, performance, promoters), we’ve interrupted our previous schedule to provide insight into the U.S. Securities and Exchange Commission’s (“SEC”) recently adopted changes to the rules governing investment adviser marketing and advertising. In today’s post, we resume our previous topic thread focusing on the