Check out our Flash Reports for the latest SEC- and compliance-related news, trends, and insights.
On August 23, 2023, a divided SEC voted to adopt enhanced regulations of private fund advisers. These included two rules that all investment advisers managing private funds must follow: the Preferential Treatment Rule and the Restricted Activities Rule.
Read MoreThe SEC adopted a package of rules and interpretations intended to increase transparency for retail investors in their relationships with investment advisers and broker-dealers. The package includes Regulation Best Interest, the Form CRS Relationship Summary, and two new interpretations of the Advisers Act of 1940.
OCIE discovered several security risks related to the storage of customer information by broker-dealers and advisers, particularly related to the use of cloud-based servers. The primary risk was found to stem from firms choosing not to utilize available security features on storage platforms.
In April 2018, the SEC released a proposed rule requiring investment advisers to provide a relationship summary to prospective clients. Form CRS, or Form 3, is intended to give retail clients simple information about investment advisers, written clearly, and concisely.
The FINRA Entitlement Program requires an annual review specifically evaluates that users have an ongoing need to access FINRA applications, may access only applications which are essential to job functions, and that users are authorized to access sensitive information, if necessary.