Reminder: Annual Brochure Delivery Obligation WHAT HAPPENED? Reminder: for Advisers with fiscal year-end Dec. 31, the annual brochure delivery deadline is approaching on April 30. The Adviser Act regulation (Section 275.204-3) states that Advisers must distribute, to each client and prospective client, brochures containing all information required by Form [...]
IARD and PFRD Systems Inaccessible 3 weekends in April WHAT HAPPENED? The SEC announced that the IARD and PFRD systems will be unavailable during three weekends in April, plus Good Friday; the outages will occur: Friday, April 5 11:00 p.m. to Monday April 8 5:00 a.m.; Friday, April 12 [...]
BB&T Subsidiary Must Pay $5.7 Million After Policy Violation WHAT HAPPENED? On March 5, 2019, the U.S. Securities and Exchange Commission ordered BB&T Securities to pay $5.7 million following Valley Forge Asset Management’s intentional overcharging of clients. The undue charges occurred from 2013 to 2016 and involved requiring clients [...]
SEC Requirement: Annual Amendment for Form ADV WHAT HAPPENED? The SEC requires that investment advisers file a Form ADV Annual Amendment within 90 days of the end of the Adviser’s fiscal year. If your fiscal year ended December 31, you will be required to file an annual amendment to [...]
FINRA Releases Report on Selected Cybersecurity Practices WHAT HAPPENED? On December 20th, 2018, the Financial Industry Regulatory Authority (“FINRA”) released a Report on Selected Cybersecurity Practices (the “2018 Report”). In it, FINRA outlines five topics of focus: Cybersecurity controls in branch offices; Methods of limiting phishing attacks; Identifying and [...]
OCIE Announces 2019 Examination Priorities WHAT HAPPENED? On December 20, 2018, the SEC’s Office of Compliance Inspections and Exams (“OCIE”) announced its 2019 examination priorities. Key areas include cybersecurity, anti-money laundering (“AML”) programs, retail investors (particularly seniors), and entities providing critical market infrastructure services. Cybersecurity Cybersecurity endures as a [...]
ShareFile Accounts to Switch to Multi-Factor Authentication WHAT HAPPENED? The SEC’s Office of Compliance Inspections and Exams (“OCIE”) has announced that cybersecurity will continue to be a focal point for its examinations in 2019. SEC Chairman Jay Clayton has echoed this sentiment, noting that the agency will include access controls as an [...]
OCIE Issues Risk Alert Outlining New Recommendations for Electronic Communications WHAT HAPPENED? On December 14th, 2018, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released a Risk Alert reminding advisers of their obligations regarding the use of electronic messaging. Under Rule 204-2 of the Advisers Act (the “Books and Records Rule”), [...]
Reminder: LAST DAY to Submit Form Filings is December 27 WHAT DOES THIS MEAN FOR ME? This is a reminder that the last day to submit form filings via IARD and Web CRD is Thursday, December 27. IARD and Web CRD will be available from 5:00 a.m. until 6:00 [...]
SEC Charges Dual Registrant with Deficient Compliance Infrastructure WHAT HAPPENED? On December 12th, 2018, the Securities and Exchange Commission (the “SEC”) released an Administrative Order to Cease and Desist against a dually registered investment adviser/broker-dealer and its sole principal (collectively, the “Adviser”). The SEC sanctioned these individuals for violations [...]