SEC Focuses on Advisory Fee Calculation: What You Need to Know WHAT HAPPENED? During recent regulatory exams, the SEC detected several issues with investment advisers’ fee calculations. The SEC wants to see that firms have: Adopted, and are following, policies and procedures that adequately address fair and accurate charging of fees; [...]
Advisers to Private Funds: Going from Exemption Reporting Adviser (ERA) to Fully Registered Adviser. Fairview partners with firms to get registered and provide on-going compliance support. WHAT IS GOING ON? Many exempt reporting advisers (ERAs) are unaware of their current compliance responsibilities as well as what triggers full registration, the timing for [...]
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 [...]