SEC Archives

RegEd Announces Next-Generation Trade Supervision and Account Monitoring Solution to Advance Investor Protection

July 25, 2023
by Eric Clements

RegEd SmartCompli, Powered by InvestEdge, Delivers the Most Advanced, Comprehensive Solution in the Industry Today RegEd announced SmartCompli, which employs advanced technology and a proprietary data model that aggregates and normalizes trade, account and KYC data, from all major clearing and custody firms, as well as direct business. SmartCompli is integrated with RegEd’s market-leading Xchange Registration solution, enabling instant validation of advisor credentials to ensure that trades are made compliantly. This eliminates the need for firms to manage data exports on a continuous basis. Joe DiAngelo, EVP Sales at RegEd discussed the typical challenges confronting the industry. “Today firms have […]

New States Adopt NASAA IAR CE Model Rule, California Expected To Join

Investment adviser representatives (IARs) are required to meet Investment Adviser Representative Continuing Education (IAR CE) requirements annually if registered in a state that has adopted the North American Securities Administrators Association (NASAA)’s Investment Adviser Representative Continuing Education Model Rule. There are currently eleven (11) states that have adopted and implemented the IAR CE requirement. An additional four (4) states have adopted the IAR CE model rule with an implementation date of Jan. 1, 2024, among them is the state of Florida. More states, including California, are expected to adopt IAR CE requirements this year. With the possible addition of California, […]

SEC Releases Risk Alert on Adviser Marketing Rule Outlining Key Areas of Focus for Examinations

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 […]

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 […]

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 […]

Securities 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 […]

5 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 […]

RegEd to Exhibit Next-Generation Agency Contracting Solution at 2022 LIMRA Distribution Conference

Xchange Agency Contracting delivers a single solution for all distribution channels, enabling rapid onboarding of agencies and agents to speed time to market RegEd will present its next-generation Xchange Agency Contracting solution at the 2022 LIMRA Distribution Conference for Financial Services. Developed with input from some of the nation’s largest insurance companies, Xchange Agency Contracting significantly reduces the time to contract and appoint producers while providing a streamlined user experience. “To gain competitive advantage in today’s marketplace, insurance companies must foster strong relationships with their distribution partners,” said Debra Freitag, Chief Strategy Officer at RegEd. “Xchange Agency Contracting improves producer […]

SEC: 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 […]

SEC Addresses Compliance Concerns in ESG Risk Alert

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 […]

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