ComplianceAlert

Questions on New Form ADV Addressed by SEC

This week the SEC’s Division of Investment Management (“IM”) released an Information Update regarding new Form ADV. As of October 1, 2017, the online system (IARD) for Form ADV filings will be modified to account for the changes to Form ADV as required by Advisers Act Release No. 4509, issued on August 25, 2016. Most…

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ComplianceAlert

Cybersecurity improvements still fall short of SEC expectations

Earlier this week, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released a Risk Alert on cybersecurity examination findings from its Cybersecurity 2 Initiative. This Initiative was more in-depth than Cybersecurity 1 and focused on how firms implemented data security controls. Examiners tested firm procedures to determine if those procedures could identify and mitigate…

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ComplianceAlert

Chairman Clayton unveils new SEC Agenda

During a speech to the Economic Club of New York on July 12, 2017, SEC Chairman Clayton discussed the new focus areas that the SEC will have during his tenure. As expected, there was a strong emphasis on market structure and capital formation activities that reflect the Chairman’s experience as an M&A lawyer. Highlights of…

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ComplianceAlert

IM Issues New Guidance on Adviser Custody

The SEC’s Division of Investment Management (IM) just issued new guidance on the Custody Rule 206(4)-2. Most likely this new guidance is a result of the special custody exams conducted by OCIE in 2016. It appears that the examination Staff observed several instances of inadvertent custody via special arrangements between advisory clients and client custodians….

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ComplianceAlert

SEC Offers Rare Examination Insight

This week the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued its overview of investment adviser examination findings since February 2015. The Risk Alert is a rare disclosure of OCIE examination findings. Five of the most common examination deficiencies are discussed in the Alert. Violations to hit the top five (5) list are as…

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