Reminder: Amended Internet Adviser Exemption - Effective Date July 8, 2024
Compliance Risk Concepts Blog
by CRC
5d ago
This is a reminder that the amendments to Rule 203A-2(e) under the Investment Advisers Act of 1940, concerning the Internet Adviser Exemption, will take effect on July 8, 2024. Definition of Internet Adviser: An Internet Adviser, as defined by the Investment Advisers Act of 1940, is an adviser who provides digital investment advisory services through an operational interactive website. This includes a website, mobile application, or similar digital platform, where advisory services are provided on an ongoing basis to more than one client. Key Amendments: Operational Interactive Website: Advi ..read more
Visit website
Regulatory News Update: SEC Adopts Changes to the Definition of Dealer and Government Securities Dealer
Compliance Risk Concepts Blog
by CRC
3w ago
What: The SEC adopted final rules that significantly expand the definitions of “dealer” and “government securities dealer”. The final rules require certain market participants that take on significant liquidity-providing roles to register with the SEC, become members of a self-regulatory organization (“SRO”), and comply with federal securities laws and regulatory obligations. Who: The SEC’s analysis suggested that proprietary or principal trading firms (“PTFs”) and private funds and advisers are the entities most likely to be affected by the new rule. This may include some hedge fund strategi ..read more
Visit website
Regulatory News Update: Court of Appeals Vacates SEC Private Fund Rule in its Entirety
Compliance Risk Concepts Blog
by Amir Lahoud
1M ago
The United States Court of Appeals for the Fifth Circuit has vacated the Securities and Exchange Commission's (“SEC”) rule aimed at enhancing the regulation of private fund advisers (“Private Fund Rule”) in its entirety. This decision significantly impacts private fund managers and their impending increased compliance requirements under the Private Fund Rule. Background The SEC adopted the rule in an attempt to enhance investor protection and prevent fraud within private funds. The Rule mandated comprehensive disclosures and compliance obligations for private fund advisers, including detailed ..read more
Visit website
Monthly Regulatory Summary (April 2024)
Compliance Risk Concepts Blog
by CRC
2M ago
As the regulatory landscape is constantly evolving, Compliance Risk Concepts (“CRC”) is issuing its monthly review and summary of various FINRA, SEC, NFA, and FinCEN publications to assist our clients in keeping abreast of notable regulatory developments and deadlines in an effort to strengthen their compliance and regulatory initiatives. FINRA Regulatory Notices There were no Regulatory Notices in April. SEC Final Rules There were no final rules in April. Proposed Rules There were no proposed rules in April. Interim Final Rules There were no interim final rules in April. Interpretive Release ..read more
Visit website
Regulatory News Update: SEC Marketing Rule Risk Alert
Compliance Risk Concepts Blog
by CRC
2M ago
What: The Division of Examinations issued a Risk Alert with preliminary observations about Marketing Rule items contained in Form ADV as well as related discussions concerning the Compliance Rule (206(4)-7), the Books and Records Rule (204-2), and the Marketing Rule’s General Prohibitions. Who: SEC-Registered Investment Advisers (The Marketing Rule applies to investment advisers registered or required to be registered with the SEC under Section 203 of the Advisers Act.) When: Risk Alert issued April 17, 2024. Why: Marketing practice assessments were designated as a particular focus area in th ..read more
Visit website
SEC Charges Five More Investment Advisers for Marketing Rule Violations
Compliance Risk Concepts Blog
by CRC
3M ago
Last week the SEC announced that it had settled charges against five more registered investment advisers for Marketing Rule violations, resulting in $200,000 in combined penalties (with one firm making up half the total on its own). This latest round of cases resulted from an ongoing targeted sweep concerning the Marketing Rule, and it follows another group of cases from September 2023 against nine other advisory firms. In the present actions, the SEC’s orders found that the five firms advertised hypothetical performance to the general public on their websites without adopting and implementin ..read more
Visit website
Monthly Regulatory Summary (March 2024)
Compliance Risk Concepts Blog
by CRC
3M ago
As the regulatory landscape is constantly evolving, Compliance Risk Concepts (“CRC”) is issuing its monthly review and summary of various FINRA, SEC, NFA, and FinCEN publications to assist our clients in keeping abreast of notable regulatory developments and deadlines in an effort to strengthen their compliance and regulatory initiatives. FINRA Regulatory Notices Per Regulatory Notice 24-06, FINRA has adopted amendments to disseminate individual transactions in active U.S. Treasury securities at the end of the day and historically, and to set related fees for members and other professionals w ..read more
Visit website
Regulatory News Update: SEC Charges Investment Advisers with Advisers Act Violations for AI Statements
Compliance Risk Concepts Blog
by CRC
4M ago
What: The SEC announced that it settled charges against two investment advisers for making false and misleading statements about their purported use of artificial intelligence (AI). The firms agreed to settle the SEC’s charges and pay $400,000 in total civil penalties. Who: Delphia (USA) Inc. and Global Predictions Inc. When: March 18, 2024 Why: The SEC’s concerns stem from firms selling AI solutions that they cannot deliver on or where the use or benefits of AI are overstated as part of an investment advisory service. Gary Gensler notes “[w]e’ve seen time and again that when new technologies ..read more
Visit website
Regulatory News Update: Deadline Approaching for Certain Proprietary Trading Broker-Dealers to Join FINRA via the Short-Form Membership Application Process
Compliance Risk Concepts Blog
by CRC
4M ago
As detailed more fully in Regulatory Notice 23-19, FINRA has adopted a short-form membership application process for certain firms that must become FINRA members due to the recent amendments to Rule 15b9-1 of the Securities Exchange Act of 1934. The amendments to Rule 15b9-1 eliminated the de minimis allowance and proprietary trading exclusion. Rescinding these provisions generally eliminated (subject to the exemptions in the amended rule) the ability for proprietary trading dealer firms to rely on Rule 15b9-1 to effect off-member-exchange securities transactions without joining FINRA. This s ..read more
Visit website
Monthly Regulatory Summary (January 2024)
Compliance Risk Concepts Blog
by CRC
4M ago
As the regulatory landscape is constantly evolving, Compliance Risk Concepts (“CRC”) is issuing its monthly review and summary of various FINRA, SEC, NFA, and FinCEN publications to assist our clients in keeping abreast of notable regulatory developments and deadlines in an effort to strengthen their compliance and regulatory initiatives. FINRA Regulatory Notices Per Regulatory Notice 24-01, FINRA’s Renewal Program supports the collection and disbursement of fees related to the renewal of broker-dealer (BD) and investment adviser (IA) registrations, exempt reporting and notice filings with pa ..read more
Visit website

Follow Compliance Risk Concepts Blog on FeedSpot

Continue with Google
Continue with Apple
OR