November 8, 2021
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 submission of application and what is required once registered.
Fairview can assist ERAs to prepare and submit SEC registration and develop and implement the required compliance program.
As an ERA filer, Fairview will coordinate with the adviser to draft and file the ERA ADV filing. Once filed, the adviser is subject to a Fiduciary Obligation, Anti-Fraud Provisions, Books and records retention as well as the ‘Pay to Play’ rule governing political contributions.
There are various events that will cause the adviser to lose the exempt status. Fairview will advise as to which these events, and timing, would prompt full SEC registration and then support the adviser through the registration process.
Once registered, there are on-going requirements of a full compliance program as required by the SEC.
Not only must a Chief Compliance Officer be named, but the firm must adopt compliance policies and procedures and conduct an annual review of its compliance program. The regulatory expectation for the CCO is high – in title, authority and operational responsibility. As a result, the firm must consider experience, bandwidth, and competing priorities.
WHAT DOES THIS MEAN FOR ME?
Fairview provides an ongoing compliance operational support model that can assist the adviser and the CCO in the analysis of requirements – including process, technology, and cost – coordinate the registration process, then assist in the operational aspect of running and maintaining the compliance program. Once the firm’s registration is accepted, our primary areas of support include:
Currently, we work with a variety of clients around the U.S. with AUM ranging from $100M to over $30B, including multi-family offices, wealth managers, institutional managers, and adviser to hedge funds, private equity funds, and real estate funds.
We have been through 101 SEC exams across the SEC regional offices. With Fairview’s support, following a 3-month onboarding process, the amount of time your CCO will spend on compliance matters can be reduced to just a few hours per week.
To learn more, reach out to Fairview Investment Services.