The SEC’s Latest Exam and Request List Trends WHAT HAPPENED? With new SEC leadership in place, including Chairman Gary Gensler and Director of Enforcement Gurbir Grewal, the Commission’s examination trends continue to evolve. Some focus areas, like cybersecurity and business continuity, are more relevant than ever with the changes [...]
Compliance Considerations for RIAs and BDs Trading Digital Asset Securities WHAT HAPPENED? Digital assets continue to be a hot topic among regulators as these securities gain momentum in the marketplace. While more comprehensive regulations around these trades are implemented, examiners from the U.S. Securities and Exchange Commission are emphasizing [...]
OCIE Risk Alert: common compliance program issues WHAT HAPPENED? On Nov. 19, 2020, the Office of Compliance Inspections and Examinations of the U.S. Securities and Exchange Commission (OCIE) released a Risk Alert outlining common compliance concerns among registered investment advisers. The list was compiled based on recent compliance examinations [...]
OCIE examiners report common branch office compliance deficiencies WHAT HAPPENED? On Nov. 9, 2020, the Office of Compliance Inspections and Examinations of the U.S. Securities and Exchange Commission (OCIE) released a new Risk Alert outlining recent observations from examinations of SEC-registered investment advisers. In general, advisers with numerous branch [...]
Adviser Fined $60,000 for Custody Rule Violation WHAT HAPPENED? On May 22, 2020, the United States Securities and Exchange Commission published information on an enforcement action against a registered investment adviser, TSP Capital. The firm was investigated, and subsequently disciplined by the SEC for violating the Custody Rule, which [...]
SEC Updates Custody Rule FAQs to Address COVID-19 Concerns WHAT HAPPENED? As effects of the COVID-19 pandemic continue to impact global securities markets, regulatory bodies are taking steps to mitigate risks for market participants. Recently, the SEC updated a set of frequently asked questions on custody rule requirements in [...]
PE Firm Charged for Improperly Allocating Overhead and Portfolio Expenses to Funds WHAT HAPPENED? On September 11, 2017, the SEC charged a registered investment adviser (“the RIA”) and its principal (collectively, “Respondents”) with improperly allocating fees and expenses to two private equity funds (collectively, “the Funds”) managed by Respondents. [...]
Action Advisers Should Take Prior to January 30, 2018, to Comply with the Custody Rule THE CUSTODY RULE As summarized in a previous Flash, the SEC published a ‘no-action’ letter in February 2017, stating that custody requirements can be triggered under certain circumstances when an adviser participates in first-party and [...]
SEC Releases ‘No-Action’ Letter Concerning the Custody Rule WHAT HAPPENED? On February 21, 2017, the SEC released a ‘no-action’ letter to address confusion surrounding the Investment Advisers Act Rule 206(4)-4 (the “Custody Rule”) and its requirements for first-party money movement and third-party money movement. The letter is intended to [...]