The SEC recently issued a no-action letter (Investment Adviser Association, February 21, 2017) that provides clarification regarding whether an investment advisor acting on a standing letter of authorization ("SLOA") has custody under the Advisers Act.
Late last month, the SEC announced that staff at OCIE are now closely looking at whether registered investment advisors and broker-dealers are complying with the agency's whistleblower regulations under Rule 21F-17. Here is what you need to know.
The SEC recently adopted rules, originally proposed in May 2015, that expand the disclosure requirements in Form ADV, Part 1A. These amendments will be effective 60 days after the publication in the Federal Register and investment advisors will need to start complying starting on October 1, 2017. This means that if your firm's fiscal year ends on December 31, 2017, you will need to comply with the Form ADV changes no later than your annual amendment filing in March 2018. A summary of the more substantive enhancements to Part 1A is provided below.
An SEC mock audit is an important tool that your registered investment advisor can utilize to help ensure that your firm is in compliance and your employees are prepared the next time the SEC appears at your door.
With the SEC increasingly focusing on problematic allocation practices such as cherry-picking, registered investment advisors, more than ever, should ensure that they have strong allocation policies and procedures.
Chief Compliance Officers should be constantly questioning how their compliance program can be improved. As a starting point, here are eight questions to consider.