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The weekly news source for investment management legal and compliance professionals

Longtime SEC Economist Will Leave

SEC deputy chief economist and Division of Economic and Risk Analysis deputy director Dr. Jennifer Marietta-Westberg will leave the agency after more than 10 years there, the SEC announced on September 15.
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SEC Crackdown on Wrap Fee Programs Nets Two More Advisers

The SEC isn’t slowing down in its enforcement campaign against dually registered advisers/broker-dealers offering wrap fee programs when those advisers charge fees in addition to the annual wrap fee. This is particularly true when the additional fees are generated by subadvisers who "trade away" transactions to non-affiliated broker-dealers.
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Dually Registered Advisers/Broker-Dealers Face Dual Examinations

The ability to charge both advisory fees and brokerage commissions may seem like a powerful incentive to become a dually registered adviser/broker-dealer, but there are challenges as well. Among them are that dual registrants have to comply with two standards, two sets of regulations, and – perhaps the most problematic – face two sets of examiners, one from the SEC, the other from FINRA.
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Automation Increasingly a Factor at Advisory Firms

Investment adviser representatives don’t need to fear being replaced by machines, at least not yet. It is clear from a well-respected annual study of investment advisers nationwide that much of the client growth in advisory firms in 2016 came not from individual IARs bringing in new clients, but from automation.
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SEC Adopts Form ADV Reporting Rule Amendments

More than a year after proposing them, the SEC on August 25 adopted amendments to Form ADV that will, among other things, require advisers to provide aggregate reporting on separate accounts. The changes will also allow private fund advisers managing multiple entities as a single business to register and report on just one form, a concept known as "umbrella registration." Compliance by advisers is required by October 1, 2017.
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SEC Wins Key Round in Administrative Hearings Battle

A three-judge appellate court panel’s decision this month to dismiss a challenge to the SEC’s use of administrative law judges is the latest development in the ongoing dispute between the Commission and a coalition of advisers, defense attorneys and others that want to at least curtail the agency’s use of ALJs. But this most likely is not the end of the game.
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FINRA Proposes Raising Gift Limit

Twenty-four years may seem like a long time to some, but apparently not to FINRA, which this month proposed increasing its limit on gifts provided by broker-dealers from $100 to $175 to account for inflation. It’s the first such increase in the gift limit since 1992.
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