SEC Risk Alert Gives Guidance on How RIAs Can Comply with Regulation S-ID

On December 5, 2022, the Division of Examinations (Division) published a Risk Alert that reported observations from recent examinations of SEC-registered investment advisers (RIAs) and broker-dealers related to their compliance with Regulation S-ID. The goal of the...

SEC Announces Enforcement Statistics for Fiscal Year 2022

On November 15, 2022, the SEC announced its enforcement results for fiscal year 2022.  Despite the lingering impact of COVID 19, the SEC filed 760 enforcement actions and recovered a record $6.439 billion in penalties and disgorgement on behalf of investors. The...

NASAA Statistics Show RIAs They Need to Improve their Compliance Programs

Recently the North American Securities Administrators Association (NASAA) released its annual Enforcement Report. The publication highlighted the investigations and enforcement actions taken by state securities regulators to protect investors and maintain the...

SEC Publishes Its 2017 Compliance Priorities

Each year, the SEC’s Office of Compliance Inspections and Examinations (OCIE) publishes its priorities, and 2017 is no exception. On January 12, 2017, OCIE announced its examination priorities. Registered Investment Advisers (RIAs) and other financial entities will...

SEC Will Examine RIAs That Employ Persons With a History of Disciplinary Events

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

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.