- Strategically Selling A Financial Advisory Practice: Your Guide To A Successful Transition
- Dual Registration Dilemma: Navigating FINRA & SEC Regulatory Shifts
- RIA M&A Activity Rebounds: Opportunities & Challenges For Wealth Managers & Advisors
- Navigating Criminal Disclosures On FINRA’s Form U4
- How To Buy A Registered Investment Advisor (RIA) Business
In the last few months, the SEC sent out hundreds of sweep letters to registered investment advisor firms requesting information regarding communication devices, policies and procedures, training, oversight, recordkeeping, and other related topics. Even if you haven’t received one of these letters yet, there’s still important information that you should know about them.
- The SEC will typically request information related to policies and procedures for communication devices, such as personal devices.
- It will also ask firms to provide documentation related to monitoring tests, management reviews, and employee training. The SEC wants to ensure that firms are in compliance with all pertinent regulations — and they want proof, in the form of records.
- Additionally, it may request information about who is responsible for overseeing these policies and procedures. This means that firms will need to be able to identify who is helping with compliance, as well as who is helping to enforce their policies and procedures.
How should firms respond?
Once your firm receives one of the SEC’s sweep letters, it’s important that you respond promptly, while providing complete and accurate information. It can be beneficial to work with a qualified professional or consultant who is experienced in responding to sweep letters from the SEC. They can help to craft your response so that it meets all regulatory requirements, and they can provide guidance on how best to demonstrate compliance with various rules and regulations. Additionally, they can help you prepare for any potential follow-up correspondence, if necessary.
Contact AdvisorLaw’s RIA Compliance team today!
At AdvisorLaw, our mission is to provide comprehensive guidance for RIAs and firms so that they can remain compliant while still running a successful business. Our team of experts boasts an impressive breadth of knowledge that spans a wide range of regulatory areas — from SEC rules to DOL standards — all with one goal in mind: helping you navigate these complexities so your business can thrive! With years of experience guiding RIAs and firms through both state securities divisions and SEC requirements, we’re here every step of the way on your journey toward full compliance.
- 2024 SEC Examination Priorities: What Registered Investment Advisors Need To Know - November 2, 2023
- Navigating The Transition From Broker-Dealer To RIA: Podcast With Model FA - October 24, 2023
- Summary of NASAA’s 2023 Investment Adviser Coordinated Exams & Recommendations - October 19, 2023