By David Sheehan and Rebecca Vasquez, Esq. For an insurance company, the key objective of a market conduct examination (MCE) is to avoid it. As regulators pay more attention to problem areas, behaving well in the marketplace in the first place mitigates the chances of being examined. The No. 1 defense against an unscheduled market conduct examination is a documented and well managed compliance program, and companies that follow a few best practices find they can stay under the regulatory radar, and when they are selected for examination, they can be fully prepared to make it go smoothly. 1. Know […]
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Highlights 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 TagComplying with Pay-to-Play Rules in an Election Year
This year’s mid-term elections pose a compliance challenge for registered investment advisory (RIA) firms. When it comes to politics, investment advisers and their covered associates can be as passionate as any voters. But “pay-to-play” rules prohibit advisers from making political donations that many other voters could. SEC Rule 206(4)-5 considers it to be unlawful for investment advisers to provide investment advisory services for compensation to a government entity within two years after a contribution to an ‘official’ of the government entity is made by the investment adviser or any of its covered associates, including a person who becomes a covered […]
Continue readingMore TagTop 5 Features from RegEd’s Enterprise Compliance Spring Release
RegEd recently rolled out dozens of exciting new features with our spring Enterprise Compliance platform release designed for financial services firms. Learn more about the top 5 features below! Industry’s Largest IAR CE Offering SCORM Compliant Courses GGC’s Contact Directory Enhancements Multiple Auditor Support Compliance Questionnaire & Advertising Review Self-Service Tools Industry’s Largest IAR CE Offering In January, RegEd launched our Investment Adviser Representative CE solution to meet the North American Securities Administrators Association (NASAA)’s Investment Adviser Representative Continuing Education Model Rule. With over 25 courses initially launched, and new ones in the pipeline, we look forward to meeting, and […]
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 TagPreparing your 2022 Firm Element Training Program – Step Two: the Written Training Plan
Adam Schaub Vice President, Platform Product Management RegEd, Inc. FINRA Rule 1240 requires each of its member firms to conduct an annual evaluation and prioritization of its registered persons’ training needs, develop a written training plan, and implement and track completion of that plan. Our first article covered the Needs Analysis, and this article covers the second step, which is to develop your firm’s written training plan. Similar to our guidance on the Needs Analysis, if your prior year’s plan was successful, you can use that as your template for 2022. If planning Firm Element is a new task for you, […]
Continue readingMore TagPreparing your 2022 Firm Element Training Program – Step One: the Needs Analysis
Adam Schaub Vice President, Platform Product Management RegEd, Inc. It is that time of year again when firms have wrapped up their 2021 CE programs and are ready to reflect and plan their 2022 programs. For many firms, this entails dusting off the 2021 Needs Analysis and Written Training Plan, and adjusting for the current year. If planning Firm Element is a new task for you, it is recommended that you create a framework that can be reused in subsequent years. FINRA’s Guide to Continuing Education Requirements has a basic outline of the expected areas that should be reviewed and considered by […]
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. […]
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