The new SEC marketing rule calls to mind the Peter Parker principle: "With great power comes great responsibility." (Any Spider-Man fans out there?) The marketing rule consolidates two outdated rules and accounts for updated technology, like social media. It was a long time coming, providing a much-needed update to advertising regulations in place since 1961 and cash solicitation rules in place since 1979. Now, advisers can choose whether to implement the rule on or after the effective date of May 4, 2021, or wait until the compliance date of November 4, 2022. But here's the catch: advisers who act now must comply with the rule in its entirety; that is, no cherry-picking some rule requirements and ignoring others. It’s a big decision, and advisers aren’t taking it lightly.
Think back to when you were a kid. You could take the time to learn new skills. Responsibilities were minimal. Everything seemed possible. Now, time is a valuable commodity. Responsibilities compound. And it often feels impossible to keep up with everything you need to do. For chief compliance officers (CCOs), busy schedules and paperwork pileups can be debilitating. These pitfalls can easily erode the hard work you consistently put into your business.
On March 3rd, the SEC released its examination priorities for 2021. Here’s what they called out:
All states except New York have long had an individual registration requirement for investment adviser representatives (IARs). But that’s about to change.
Written By Yuri Bredle
Managing compliance remotely comes with its own set of challenges; but as with any new task or discipline, it gets easier the more you do it.
By Charles Black
Reality Check is an occasional blog post series we do where we analyze actual SEC enforcement actions or examination experiences and give you a summary of what to expect in the “real world.”
by Lucy Lee
Financial technology or fintech for short is extremely beneficial for businesses due to its widespread utility. It refers to software, algorithms, and applications that are used on desktop and mobile platforms. These are used to manage investments, deposit checks, move money across accounts, and make payments. Without being aware of it, almost all consumers use fintech on a daily basis. However, it also provides many benefits to businesses for back-end and front-end processes. For instance, Bo J. Howell explains how automation has lowered transaction costs for investors, such as zero-fee ETFs, giving some businesses a competitive edge. In addition, it gives investors more options for managing their assets. It is also helping business in many other ways:
by John Williams
Director of Compliance Services at Joot
The Securities & Exchange Commission recently issued a Risk Alert to share some of the observations that the Office of Compliance Inspections & Examinations (OCIE) have seen during the COVID-19 pandemic.
By Charles Hamparian
CEO of Sentience
In this age of cloud computing, smaller businesses have had increasing access to enterprise-class virtualization tools that were usually reserved for the largest organizations. By utilizing these protocols your organization can have the ability to work compliantly and remotely from anywhere in the world. Virtualizing your business means increased uptime and scalability while also drastically reducing overall running costs. A solid foundation on which to build your virtualized business should include the following:
With every new regulatory policy or form, the first time implementing it is always challenging. There are no models to follow or examples to guide you. Fortunately for our readers, we’ve cleared away some of the high brush to give you a clearer path.
Joot’s compliance experts have completed nearly two dozen Form CRSs for our clients. Based on that experience, here are 10 things to keep in mind.