Audit Archives - Smart RIA

Testimonial Rule and Social Media Intersect in Recent Enforcement Actions

July 17, 2018 by Ara Jabrayan Leave a Comment

On July 10, 2018, the SEC settled enforcement actions brought against two SEC-Registered Investment Advisers (RIAs), three Investment Adviser Representatives (IARs), and a marketing consultant, for their involvement in violating the Testimonial Rule using social media and the Internet. Rule 206(4)-1(a)(1) under the Investment Advisers Act sets forth what types of advertisements are prohibited. The rule prohibits express or implied testimonials. Although the word “testimonial” is not defined in Rule 206(4)-1, it has been interpreted as being a statement of

How to Hire a CCO to Manage RIA Compliance

November 20, 2017 by Mac Bartine Leave a Comment

Registered investment advisors must have someone in place to manage RIA compliance with SEC and state regulations, a position commonly known as the chief compliance officer. It’s a vital role, and finding the right fit for CCO could be the deciding factor that makes or breaks a firm.

How Does a FINRA Audit Work?

December 21, 2016 by Mac Bartine

The Financial Industry Regulatory Authority, also known as FINRA, is not a governmental body like the SEC or state RIA regulators, but it still plays a major role in how RIA firms are run and overseen. FINRA is a private, non-profit, self-regulatory organization for broker-dealers. It operates on appointment by the SEC and can levy fines and other penalties on its members.

How to Weather Your First RIA Audit as a New Firm

November 14, 2016 by Mac Bartine

It’s inevitable: your RIA firm will be audited. The SEC and state regulators have been steadily increasing the number of RIA audits each year, and if your firm hasn’t been visited yet, it’s only a matter of time.

RIA Compliance 101

July 29, 2016 by Mac Bartine

Being a registered investment advisor isn’t easy. You may have chosen this profession because you have great business and investment sense, a drive to help others manage their wealth, and a desire to build a solid financial foundation of your own. But working in this industry also requires strict adherence to a slew of complex and exacting guidelines.