New Enforcement Date for DOL Rollover Recommendations: Documenting and Meeting the DOL’s Prohibited Transaction Exemption WHAT HAPPENED? The recent Department of Labor Field Assistance Bulletin 2021-02 provides that from December 21, 2021, through January 31, 2022, the DOL will not pursue prohibited transaction claims against firms who are working diligently, and in [...]
Rockin’ the Proxy Boat WHAT HAPPENED? On September 29, 2021, the SEC’s new Chairman, Gary Gensler held an open meeting discussing proposed amendments to Form N-PX. These amendments would enhance the information that investment companies report about their proxy votes. To provide insight on this topic, Form N-PX was implemented [...]
Be Alert as Ransomware Conti-nues to Take Over WHAT HAPPENED? The Cybersecurity and Infrastructure Security Agency (CISA) and the FBI have seen Conti ransomware used in more than 400 attacks on U.S. and international organizations. Typically, Conti ransomware attacks are malicious in nature and occur when a bad actor intends to steal [...]
Family Matters: The Family Office Exemption from SEC Registration Could Change WHAT HAPPENED? Recently, U.S. Congresswoman, Alexandria Ocasio-Cortez introduced The Family Office Regulation Act of 2021 (4620) to amend the Investment Advisers Act of 1940 to require regulatory oversight of family offices. The proposal aims to limit the exemption to family offices with less [...]
The SEC Suits Up for Suitable Recommendations WHAT HAPPENED? The SEC has recently started cracking down on investment advisers improperly recommending complex financial products. In a recent case, the SEC found that the adviser had not adopted and implemented any written policies and procedures to prevent these types of recommendations from [...]
Cybersecurity and ESG Proposals Are on the Horizon: Key Takeaways from SEC Chair’s Senate Testimony WHAT HAPPENED? Before the Senate Banking Committee on September 14th, SEC Chair, Gary Gensler, indicated that numerous rules related to cybersecurity and climate risk, among others are in the works. Even though this is the first time the [...]
ALERT: Phishing Attack Posing as FINRA Request WHAT HAPPENED? Broker-dealers, investment advisers, and investment companies could be affected by a new phishing campaign. This is similar to the FINRA survey phishing campaign that occurred in October 2020.The attack is originating from bad actors, purporting to be the Financial Industry Regulatory Authority (FINRA) [...]
SEC Cybersecurity Sanctions: Your Firm Could Be Next WHAT HAPPENED? On August 30th, the SEC sanctioned eight firms in three actions for failures in cybersecurity policies and procedures. The investigations revealed: Among the eight firms, nearly 200 cloud-based email accounts of firm personnel, representatives, and financial advisors were taken over by unauthorized [...]
Wrap Fee Program Compliance Risks: The SEC’s Latest Guidance WHAT HAPPENED? The SEC recently released a Risk Alert outlining common compliance concerns among advisers’ wrap fee programs. This type of compensation arrangement carries unique risk because the flat fee structure may incentivize advisers to trade wrap accounts less frequently. [...]
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 [...]