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 […]
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SEC’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 TagForm CRS: An Overview of the SEC-Mandated Customer Relationship Summary Due June 30, 2020
About Form CRS In June 2019, the SEC adopted requirements (SEC Release 34-86032) for registered investment advisers, broker-dealers, and dual-registrants that do business with retail investors to file Form CRS (customer relationship summary). Form CRS is intended to inform retail investors about: The types of client/customer relationships and services the firm offers; Fees, costs, conflicts of interest, and required standard of conduct associated with those relationships and services; Whether the firm and its financial professionals currently have reportable legal or disciplinary history; How to obtain additional information about the firm. Form CRS applies to registered investment advisers, broker-dealers, and dual […]
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