The Securities and Exchange Commission (SEC) recently published a risk alert highlighting additional areas of focus in relation to the amended Marketing Rule. In 2020, Rule 206(4)-1 under the Investment Advisers Act of 1940 was amended to modernize rules that govern investment adviser advertisements and payments to solicitors. The first risk alert was published September of 2022 and detailed performance advertising, substantiation, policies and procedures, and books and records requirements. In addition to the initial Marketing Rule exam areas of review, the recent alert emphasizes three key areas of additional emphasis: testimonials and endorsements, third-party ratings, and Form ADV. The […]
Continue readingMore TagAuthor: RegEd Regulatory Affairs Team
FINRA Introduces New Remote Inspections Pilot Program
Three-Year Pilot Program Seeks to Modernize Inspection Process for OSJs, Branch Offices, and Non-Branch Locations The Financial Industry Regulatory Authority (FINRA) has withdrawn its original remote inspection pilot program from 2022 and proposed a new pilot initiative. This revised program aims to bring the inspection process for Office of Supervisory Jurisdiction (OSJ), branch offices, and non-branch locations into the modern era. The proposed pilot program is currently open for public comment. Risk Assessments and Preaudit Questionnaires The pilot program, which is set to last for three years if approved by the Securities and Exchange Commission (SEC), would require participating firms […]
Continue readingMore TagHighlights From the SEC Municipal Advisor Risk Alert
The SEC has provided a Risk Alert to remind municipal advisors of their obligations and to raise awareness among Municipal Advisors (“MAs”) of the most often cited deficiencies and weaknesses observed in recent MA examinations. Many of the same areas were covered in its 2017 Risk Alert, indicating that the SEC continues to note similar deficiencies as it did 5 years ago. Inaccurate or Incomplete Registrations and Filings The SEC found significant overlap in registration and filing deficiencies when compared to those identified in its 2017 Risk Alert. Among the inaccurate or incomplete information filed on SEC Forms MA and […]
Continue readingMore TagSecurities Enforcement Trends Reflect Regulators’ Concerns for Investors
Securities regulators have stepped up enforcement to protect investors from emerging threats and evolving risks. From Reg BI to crypto to senior fraud, regulators have increased scrutiny and sanctions to punish violators and prevent future infractions. “Restoring trust in our financial markets and institutions requires the use of robust remedies,” Gurbir S. Grewal, director of the SEC’s Division of Enforcement, said recently, in congressional testimony regarding the regulator’s enforcement priorities and budget request. “In addition to punishing wrongdoers for violations of the securities laws, our remedies must deter those violations from happening in the first place. They must be viewed […]
Continue readingMore Tag5 SEC Examination Priorities for 2022
The SEC’s Division of Examinations’ exam priorities for fiscal year 2022 include standards of conduct as well as issues related to technology and investment products. “The Division will prioritize examinations of several significant focus areas that pose unique or emerging risks to investors or the markets, as well as examinations of core and perennial risk areas. Their importance to investors and the markets, coupled with the seriousness and frequency of observations in prior years’ examinations, demonstrate the need for the Division to remain vigilant in these areas,” according to the 2022 Examination Priorities report released by the SEC on March […]
Continue readingMore TagSEC: Investment Advisers Can ‘Tailor’ Cybersecurity Policies and Procedures to Fit Their Business
Though the SEC has proposed requiring cybersecurity policies and procedures for investment advisers for the first time, it has also provided firms flexibility in addressing the general elements to be covered. “We recognize that there is not a one-size-fits-all approach to addressing cybersecurity risks. As a result, the proposed cybersecurity risk management rules would allow firms to tailor their cybersecurity policies and procedures to fit the nature and scope of their business and address their individual cybersecurity risks,” the SEC wrote in recently proposed cybersecurity risk management rules. Advisers and funds would also have to report any significant cybersecurity incidents […]
Continue readingMore TagRegEd Experts to Bring Licensing Insights and Regulatory Updates to SILA Heartland Chapter Meeting
RegEd will share best practices in licensing and registration and relevant regulatory updates with Securities & Insurance Licensing Association members. At Wednesday’s SILA Heartland Chapter meeting, Michael Pouliot, head of sales for RegEd’s Enterprise Xchange Contracting, Licensing, and Registration solution, will offer SILA members ways to drive licensing and registration efficiencies that create a competitive advantage. Also, Brandi Brown, senior vice president of regulatory affairs for RegEd, will give a regulatory overview to attendees. SILA’s members include licensing experts whose occupations encompass all aspects of insurance licensing and securities registration. “Licensing and registration regulations can be complex and are increasingly dynamic,” Brown said. […]
Continue readingMore TagFINRA Publishes 2022 Report on Exam and Risk Monitoring Program
The newly released 2022 Report on FINRA’s Examination and Risk Monitoring Program reflects an evolving securities industry. “Today’s securities industry landscape is highly dynamic in terms of business models, technologies, products, and compliance practices. This report looks at these significant changes through the lens of FINRA’s commitment to investor protection and market integrity so that firms’ compliance programs can benefit from our findings about emerging and ongoing issues,” stated Greg Ruppert, executive vice president, member supervision, in a press release announcing the release of FINRA’s 2022 exam report. Exam findings in key areas Focus areas highlighted in the report include: FINRA’s initial findings from its […]
Continue readingMore TagSEC Cybersecurity Policy: New Rules for Investment Advisers Possible
The next evolution in SEC cybersecurity policy could come Wednesday when commissioners consider whether to propose new rules for registered investment advisers and investment companies. Commissioners will consider staff recommendations for addressing cybersecurity risk management for investment advisers and investment companies as one of the agenda items for their Feb. 9 meeting. The commission will also consider related amendments to certain rules regarding adviser and fund disclosures under the Investment Advisers Act of 1940 and the Investment Company Act of 1940 under the same agenda item, according to the SEC’s meeting agenda. SEC Chair Gary Gensler has asked staff to […]
Continue readingMore TagRegEd Subject-Matter Experts to Share Regulatory Updates and Industry Insights at SILA Chapter Event
RegEd Representatives will Present at a Meeting of the Buckeye Chapter of the Securities & Insurance Licensing Association Raleigh, N.C., Jan. 25, 2022 — RegEd will provide Securities & Insurance Licensing Association members with insights into the latest regulatory changes and trends, as well as opportunities, challenges and best practices impacting licensing and registration professionals in the financial services industry. At Wednesday’s SILA Buckeye Chapter meeting, Brandi Brown, senior vice president of regulatory affairs for RegEd, will give a regulatory overview to attendees. Also, Michael Pouliot, head of sales for RegEd’s Enterprise Xchange Contracting, Licensing, and Registration solution, will offer SILA […]
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