The exam is finally over! If your advisory firm has been undergoing an SEC examination, you’ve probably been waiting a long time to utter those words. Well, time to get back to business, right? Not so fast. As our series on SEC examinations has detailed, this is a long process. And if your firm received
Responding to a Deficiency Letter (aka Your Report Card)
An onsite examination from the SEC can often feel like a surprise visit from your in-laws. You wish you had more time to clean up before they arrived, you know they’re judging you the whole time they’re there, and you can’t wait for the moment you get to say goodbye.
And, after what seems like
Don’t Panic – Responding to an SEC Examination Request
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,
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
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
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
Posting or Paying for a Review – SEC Changes Game for Testimonials and Solicitors
Word-of-mouth is still one of the best ways to attract business. Investors, whether new or seasoned, consistently look to the experiences of previous customers or talk to someone they trust before they hire a financial adviser. As a result, posting great reviews and compensating others to make recommendations continues to be a key part of