The SEC wants investment advisers to strengthen compliance practices related to environmental, social, and governance (ESG) investing, which is increasingly popular. “This rapid growth in demand, increasing number of ESG products and services, and lack of standardized and precise ESG definitions present certain risks,” the SEC’s Division of Examinations wrote in a risk alert for ESG investing that examiners released on April 9. “For instance, the variability and imprecision of industry ESG definitions and terms can create confusion among investors if investment advisers and funds have not clearly and consistently articulated how they define ESG and how they use ESG-related […]
Continue readingMore TagTag: Compliance Management
Compliance Management
CFPB Becomes More Vigilant about Abusive Practices as it Strengthens Consumer Protections
The Consumer Financial Protection Bureau has signaled that it will be more aggressive in policing abusive acts or practices as part of a broader shift in priorities under the direction of the Biden administration. Under the leadership of acting director Dave Uejio, who assumed the position after Biden took office in January, the CFPB recently rescinded a year-old policy that it had implemented during the Trump administration. In rescinding the policy, in which the CFPB had focused on achieving compliance with regulations prohibiting abusive acts or practices through supervisory measures rather than enforcement actions, the CFPB aligned itself with Biden’s […]
Continue readingMore TagSEC Issues AML Risk Alert for Compliance Issues Related to Suspicious Activity Monitoring and Reporting at Broker-Dealers
The SEC has warned broker-dealers to watch for compliance issues related to suspicious activity monitoring and reporting. Seeking to improve compliance with federal anti-money laundering (AML) rules and regulations, the Division of Examinations encouraged firms “to review and strengthen their applicable policies, procedures, and internal controls” in an AML risk alert for broker-dealers. “The SEC encourages broker-dealers to strengthen their policies and procedures for identifying and reporting suspicious activity as examiners have seen that many firms are not fulfilling their obligations under the law,” said Margie Webber, director of regulatory compliance for RegEd. The Examination Division has noticed several deficiencies […]
Continue readingMore TagSEC’s Examination Priorities for 2021 Reflect Continued Concern for Retail Investors
The SEC’s Division of Examinations will continue to emphasize protection for retail investors in the coming year, particularly for seniors and individuals saving for retirement. The Examination Division will evaluate whether registered investment advisers (RIAs) meet standards of conduct and will examine whether firms appropriately mitigate and disclose conflicts, regulators recently announced in releasing the SEC’s Examination Priorities for 2021. Examiners will also probe sales of retail investment products. The priorities are a continuation of the SEC’s efforts to protect retail investors. In the fiscal year 2020, the Division of Examinations: Issued more than 2,000 deficiency letters, which prompted many […]
Continue readingMore TagModernized Marketing Rule for Investment Advisers Takes Effect on May 4
The countdown to the implementation of the modernized marketing rule for investment advisers has begun. After years in the making, the sweeping changes that the SEC made in modernizing marketing rules for investment advisers will finally take effect on May 4, 2021, 60 days after being published in the Federal Register on March 5. Firms will have 18 months, until Nov. 4, 2022, to comply with the rules, Karen Barr, president and CEO of the Investment Adviser Association, told ThinkAdvisor for a story about the effective date for the changes. A New Era in Compliance for Investment Advisers “The marketing […]
Continue readingMore Tag
Advertising Review: Is Your Marketing Collateral Review Process 17a-4 Compliant
RegEd’s Advertising Review solution is built to support firm’s marketing collateral approval process. In addition to robust workflows, Advertising Review is designed with compliance in mind including Worm and D3P support per SEC requirements. Many regulations imposed by FINRA and the SEC have to do with the archiving of electronically stored information (ESI). Therefore, to ensure compliance firms are required to archive all necessary ESI. However, just archiving the data is not enough. SEC Rule 17a-4 mandates it must be archived in the proper format to meet compliance standards. Write Once Read Many (WORM) WORM describes a data storage device […]
Continue readingMore TagL&R Operations and the Shift Toward Automation: Key Drivers
The Drivers of Automation Managing licensing and registration operations means providing a high level of exceptional service to agents and producers against a challenging backdrop of fluctuating volumes, complex transactions, ever-changing regulations, and rigorous data and reporting demands. It requires extraordinary levels of efficiency and continuous assimilation of best practices. We take a look at the biggest drivers that propel insurers and distributors to implement advanced technology into their licensing operations. Time to Market, User Satisfaction, and Reduced Risk There are many drivers of automation in licensing and registration operations, but the most significant are the need for increased staff […]
Continue readingMore TagTrends in L&R Operations: A Changing Industry and New Ways to Work
An Evolving Industry and a New Way to Work The insurance industry and the technology that supports it continue to evolve, and licensing and registration operations remain at the forefront, providing extraordinary levels of efficiency and continuous assimilation of best practices. The Growth of Call Centers, Evolving Role of Technology For example, call centers, both internal and outsourced, have grown as a result of the insurance industry’s increased digitization and the popularity of robo-advisers. These shifts have been driven by a new generation rising higher through the business and by overall evolving expectations of what technology should provide. In addition, […]
Continue readingMore TagRegEd Appoints Adam Schaub as Vice President of Platform Product Management
RegEd, the market-leading provider of enterprise regulatory compliance solutions to banks, broker-dealers, insurance companies and brokers, is pleased to announce its appointment of Adam Schaub to the role of Vice President, Platform Product Management. In this role, Schaub will direct RegEd’s platform product management team and lead the strategy and vision for the continuous evolution of RegEd’s enterprise platform. “Adam comes to RegEd with deep industry, regulatory and compliance subject matter expertise. He has over 20 years of direct experience in the financial services compliance industry, and was a RegEd client leading the compliance services team at his last role, […]
Continue readingMore TagRegEd Appoints Chris Heggelund as Chief Client Officer
RegEd, the market-leading provider of enterprise regulatory compliance solutions to banks, broker-dealers, insurance companies and brokers, is pleased to announce its appointment of Chris Heggelund to the role of Chief Client Officer (CCO). In this role, Heggelund will direct RegEd’s Implementation, Customer Success and ongoing Customer Support functions to drive continuous client satisfaction, and meet and exceed growth objectives. “Chris is an industry veteran who has spent the last twenty years in the InsureTech space, with the last decade building world-class services organizations. He brings a deep understanding of insurance licensing and securities regulation, technology and customer success best practices […]
Continue readingMore Tag