Learn about major pitfalls investment advisers should avoid when using compliance technology and practical implementation strategies.
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:
Foreword by Dina Tantra:
As we all continue to navigate the choppy waters of the global pandemic, managing and mitigating risk is yet another cause for sleepless nights. Our guest blogger, Charlene Aldridge, CEO of Aldridge, Kerr & Associates, helps us to approach this through "Doable, Chewable Chunks
®." Charlene walks us through the way to identify, evaluate, prioritize and mitigate risk. Charlene's boutique firm assists clients with operational needs through optimizing process and procedures.
There are many aspects to compliance and from time to time, I like to bring in complementary experts to share their perspectives and knowledge. This week, I’m delighted to have Michael Williams from Clym (pronounced like “climb”) tell you more about data privacy on your website and an important new regulation from California that can affect any firm in the country. I hope you enjoy this post. After reading, please contact us or Michael if you think this could be an issue for your firm. – Bo Howell
by Michael Williams of Clym
Here we are, less than one month from the date when the California Attorney General can start enforcing the California Consumer Privacy Act (“CCPA”). Hopefully by now you know if your business must comply with the CCPA, if not, check out our blog post from January—Is it time to overhaul your privacy policy and notice? If your firm is subject to the CCPA and you are not prepared to comply with the law, don’t worry! Joot and Clym have you covered!
By Jody Foster, President of Symphony Consulting
Foreword by Bo Howell:
I’m delighted to feature guest bloggers from time to time, especially when it’s someone that brings a complementary perspective to our compliance expertise. Jody Foster has been a supporter of Joot from our earliest days. She discusses some of the considerations to keep in mind if you’re planning to start your own fund or RIA.
By Nick Horvath
Vendor due diligence, an oldie… but a goodie. Vendor due diligence has been a risk mitigation technique since the words Caveat Emptor were first spoken. But what about today? How much emphasis should your firm place on vendor due diligence? Why should you care? Let us count the ways.
SEC’s Proposed Fund of Funds Rule Simplifies Fund of Funds Compliance, But Creates Liquidity Concerns
By John Yoder and Bo Howell
For over a decade now exchange-traded Funds (“ETFs”) have become a primary investment for asset managers to gain low-cost access to broad segments of the markets. More recently, ETFs have grown to focus on more niche parts of the investment universe (e.g., sector ETFs, thematic ETFs, etc.). The growth in the number and size of these products reflects an asset management trend away from concentrated portfolios to asset allocation strategies. Often, these strategies are packaged in mutual funds or other investment companies that simply acquire shares of ETFs and other funds, as opposed to individual securities like stocks or bonds.
