Compliance Errors Archives

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

Compliance Budgets Up by 9%, But CCOs Say the Real Cost is Time

December 13, 2017 by Mac Bartine Leave a Comment

It’s been a disappointing year for those who thought the new administration would quickly roll back regulations and oversight in the financial industry, including state and SEC compliance for Registered Investment Advisors. This time last year, some RIAs were hoping to decrease their compliance budgets and apply those dollars to other efforts. Contrary to expectations, WealthManagement.com reports that compliance budgets are up by nine percent this year. While some regulatory changes, including the Department of Labor’s Fiduciary Rule, have been

Attention RIAs: Updated Form ADV Now Includes Your Social Media Accounts

December 4, 2017 by Mac Bartine Leave a Comment

In October, the SEC announced several changes to Form ADV, the main reporting document for registered investment advisors (RIAs). One of these changes illustrates just how much social media has permeated the business landscape and how it can affect your company if not managed properly. What you post on social media can have real repercussions on your career. That’s right, the sage advice you’re given before leaving school to pursue your first job applies even when you’ve established a career

What Is RegTech and How Can It Help RIAs?

November 6, 2017 by Mac Bartine

Short for regulatory technology, RegTech is a subset of FinTech (financial technology), which encompasses software and cloud-based applications designed to help professionals like RIAs and compliance consultants navigate federal and state regulations.

Why RIA Compliance Is a Major Competitive Advantage

May 25, 2017 by Mac Bartine

You know that there are many obstacles that could keep you and your firm from being successful. Being in a competitive industry means running your business competitively. While some firms may look at SEC and state RIA compliance as a burden, making it a priority can give you a powerful edge against them.

Stay Out of the Penalty Box with RIA Compliance Software

May 16, 2017 by Mac Bartine

As a registered investment advisor, it’s only a matter of time until you get audited. Audits by SEC or state regulators can happen at random, or be triggered by an issue. It’s not a matter of if, but a matter of when, so you need every tool at your disposal to ensure that you’re—and that includes your RIA compliance software.

Facing Decreased Budget, Focus Shifts Heavily to SEC Oversight

Facing Decreased Budget, Focus Shifts Heavily to SEC RIA Oversight

March 15, 2017 by Mac Bartine

When the new administration took office, members of the wealth management industry assumed that it would result in the loosening of federal and state regulations, and the decrease of SEC RIA oversight. That, however, turned out to be incorrect. At least so far.

3 RIA Compliance Requirements for Cybersecurity

February 24, 2017 by Mac Bartine

The internet provides a huge and growing frontier for criminals, and your firm is always at risk for an attack. Poor data and network management, lax protocols, and lack of knowledge can make any company susceptible. Without the proper protections, unscrupulous people can easily steal information to use, sell, or ransom back to you at an exorbitant rate.

4 Internal Compliance Habits RIAs Should Cultivate

January 11, 2017 by Mac Bartine

Navigating the world of RIA compliance can feel time-consuming at best and stress-inducing at worst. Compliance isn’t always an easy task, but keeping up with DOL, SEC, and state mandates is a necessary step in ensuring the success of your business.

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.