On September 12, 2016, the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a Risk Alert which announced its intent to conduct examinations of Registered Investment Advisers (RIAs) that employ or contract with persons who have a history of disciplinary events. OCIE’s examinations will evaluate the effectiveness of the RIA’s compliance programs, supervisory oversight, and disclosures to clients and prospects.
Client complaints can negatively impact Registered Investment Advisers (RIAs) for years to come. Examiners expect an RIA to enact policies and procedures detailing how the firm will address complaints. These policies and procedures should demonstrate that the adviser takes all client complaints seriously and will attempt to resolve them.
All SEC-registered advisers must adopt a code of ethics meeting certain minimum requirements: