Reality Check: Best Execution and Selection of Mutual Fund Share Classes for Clients

Sep 24, 2020 1:15:00 PM

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.” In 2019, the SEC closed its mutual funds share class selection disclosure initiative. This initiative allowed investment advisers to self-report to the SEC instances where they failed to discl...
 

Crunch time: 10 Tips to Completing Your Form CRS

Jun 11, 2020 1:30:00 PM

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. Co...
 

The True Cost of Regulatory Non-Compliance

May 14, 2020 4:30:00 PM

What is the cost of non-compliance? How much should an RIA spend on compliance? Are these compliance tools and services worth it? The answers to these questions become clearer when we look at both the direct and indirect impact of examination and enforcement actions taken by the SEC. In its Fiscal Year (“FY”) 2019, the SEC brought 862 enforcement actions, a 7% increase from FY 2018.[1] The law fir...
 

Rise of the Machines, Part 3: How big data is changing more than just portfolio management

Dec 5, 2019 11:30:00 AM

Introduction  By Bo Howell  As we race towards the end of 2019, I can’t help but think about where we’ve been over the past year and where we are headed. This series of articles was written with both perspectives in mind. As a user and developer of technology, I’m very interested in the interplay between machines and people. We live in a society where computers are part of nearly all aspects of ou...
 

Joot Expands its Compliance Team

Nov 4, 2019 10:43:00 AM

We are excited to announce the newest addition to the Joot team: Charles Black! Charles brings over 17 years of experience in the asset management industry, including roles in compliance, fund accounting, and fund administration. Charles has served as a compliance officer for both investment advisers and investment companies. Most recently, he served as the Chief Compliance Officer for a few mutua...
 

10 Tips to Avoid Pay-to-Play Restrictions

Oct 17, 2019 11:15:00 AM

I recently attended a panel discussion designed to provide tips to stay on the right side of pay-to-play requirements. Asset managers that manage investments of public entities (primarily state and local municipalities and their agencies) need to avoid the strict liability standards that are triggered by crossing the line.  Of course, the panel started with an overview of SEC Rule 206(4)-5 and sim...
 

Joot Expands its Compliance Team and Service Offerings

Sep 19, 2019 12:50:00 PM

We are excited to announce the newest addition to the Joot team: John Ramirez! According to Bo Howell, CEO of Joot, the firm has been growing steadily and it is focused on building the right team to deliver both innovative technology and exceptional services. “I am excited to have John join our team. He’s an experienced entrepreneur, talented attorney, and seasoned compliance officer,” says Howell...
 

Advisory Compliance Solutions Merges with Joot

Aug 1, 2019 3:00:00 PM

Joot grows its team and area of expertise! CINCINNATI, OHIO – August 1, 2019 - Joot, a leading provider of compliance technology and services to small and middle-sized investment advisers, today announced its merger of Advisory Compliance Solutions, LLC (ACS). As part of the merger, Cynthia Lower Custer, Managing Member of ACS, will become Treasurer and Director of Compliance Services at Joot.  “W...
 

Tone at the Top - Culture of Compliance

May 16, 2019 1:00:00 PM

As Chief Strategy Officer for CCO Tech and Co-CEO of Global Rhino (an affiliated company), I had the privilege of speaking on a panel at a national compliance conference with three esteemed industry colleagues, two in-house CCOs at asset management firms and a consulting expert in the hedge fund space.  As a panel, we focused on “Tone at the Top - Culture of Compliance.” Through decades of experie...
 

CCO Tech Launches Integrated Compliance Calendar

Jan 16, 2019 9:35:08 AM

FOR IMMEDIATE RELEASE CCO Tech announces the release of its Compliance Calendar, the second module of an integrated web-based compliance system for small- and mid-sized registered investment advisers (RIAs). The Compliance Calendar allows RIAs to schedule their compliance tasks and receive notices and reminders of important dates. The application integrates directly with CCO Tech’s SEC Filing Mana...
 

Corporate Governance Update: How Delaware law interacts with federal securities law

Oct 4, 2018 8:00:56 AM

For many asset managers and investment companies, the topic of compliance tends to focus on federal securities, particularly Rule 206(4)-7 under the Investment Advisers Act of 1940 (the "Advisers Act) and Rule 38a-1 under the Investment Company Act of 1940 (the "Company Act"). While these rules and the SEC's guidance related to them are important, state law also plays a vital role in compliance. D...

CCO Tech Announces First Ever Compliance Automation Solution for Registered Investment Advisers

Oct 1, 2018 10:30:38 AM

FOR IMMEDIATE RELEASE Cincinnati, OH (October 1, 2018) - CCO Tech today announces the release of its SEC Filing Manager, the first module of an integrated web-based compliance system for small- and mid-sized registered investment advisers (RIAs). SEC Filing Manager automates the completion of Form ADV, the starting point for regulatory compliance filing for every SEC-registered investment adviser....

GDPR in a Nutshell and the Titan Platform*

Sep 21, 2018 8:30:07 AM

* The information in this article is provided for informational purposes only.  No information should be construed as legal advice from Advanced Alternative Investment Systems or the Titan Technology Group, Ltd. or the individual author nor is it intended to be a substitute for legal counsel. Introduction General Data Protection Regulation (“GDPR”) falls under the European Union’s data privacy and...
 

Introduction to the Titan Platform – The New Kid on the Block

Sep 7, 2018 9:15:40 AM

An Interview with Principal Michelle Morgan What do you do when you’ve been looking for software for your fund administration company but can’t find anything that does everything you want?  If you’re Michelle Morgan and Peter McKiernan, Canadian chartered accountants with 25 years industry experience each, you build your own. The business partners are proud to introduce Titan, an all-in-one, cloud...
 

The BIG Reveal: Welcome to the Future of Compliance

Aug 24, 2018 10:00:41 AM

Last week I talked about changing a critical part of our industry to level the playing field for all asset managers. I was talking about compliance. For years now, there's been increasing development in fintech, but it's focused mostly on investing, trading, and business development applications. As these activities have become increasingly automated, a gap has developed between business operation...
 

Did AI just result in 13 settlements?

Jul 6, 2018 7:30:55 AM

At the beginning of June, the SEC announced settlements against 13 private fund advisers[1] for failing to provide the required information in Form PF.[2] Generally, Form PF requires information on private funds managed by investment advisers if the total assets of the private funds are over $150 million. The form, which became effective in 2012, asks for information on a private fund’s assets und...

IM Director's Recent Remarks on Standards of Conduct & Liquidity Risk Management

May 25, 2018 8:30:21 AM

IM Director's Recent Remarks on Standards of Conduct & Liquidity Risk Management by Peter Michael Allen   Recently, Dalia Blass, Director of the SEC’s Division of Investment Management (IM) commented about the standards of conduct for investment professionals and liquidity risk management for open-end funds, including mutual funds and exchange-traded funds (ETFs). Given that the SEC recently submi...
 

8 Things You Need to Know about the Liquidity Rule

May 11, 2018 4:30:33 AM

1. Its name. Most people simply refer to the rule as the “liquidity rule”, but its technical name is Rule 22e-4: Investment Company Liquidity Risk Management Programs. If the rule survives in any meaningful form, we should start a contest on whether the industry keeps calling it the liquidity rule or refers to it as Rule 22e-4. Think of Rule 38a-1 under the Investment Company Act. Some people may ...

Starting a Compliance Program

Apr 1, 2018 10:14:33 PM

In January 2018, The SEC’s Fort Worth regional office held a teleconference that summarized the SEC’s 2017 exam findings and its focus areas for 2018. The staff noted that some of the common weaknesses in compliance programs for investment advisers include: Failure to tailor written policies and procedures to the adviser’s business (i.e., generic compliance manuals). Failure to manage or disclose ...