See why ACA Insight is the leading newsletter on regulatory compliance. Sign up for a free 1-week trial.

The weekly news source for investment management legal and compliance professionals

Recent Stories

DOL Proposes Fiduciary Rule Exemptions Delay, Considers Further Measures

The Department of Labor keeps finding ways to prevent key elements tied to its Fiduciary Rule from taking effect. The latest: an 18-month application date delay on three Rule exemptions, the likelihood that the DOL will "in the near future" propose "a new and more streamlined class exemption," and calls for comments in several other areas.
Continue Reading

Inadequate Disclosure of Fee Calculations May Lead to Fee Returns

Advisers writing fund offering materials and operative documents must take care when disclosing how they calculate fees and expenses. A wrong word or phrase – writing "average" instead of "aggregate," for instance – is all it might take for the SEC to state that a disclosure is inadequate and that clients must be refunded a great deal of money.
Continue Reading

Liquidity Risk Management First Steps: Define Program, Assign Responsibility

There’s no time like the present for fund managers to start working on compliance with the SEC’s Liquidity Risk Management Rule. The compliance deadline may be months away, but wise firms will use that time to begin the compliance process by assigning responsibility and defining a program that matches their funds’ investment portfolios. Those that do will be well-positioned to tackle the additional compliance challenges that await. Those that don’t may find themselves scrambling as compliance deadlines approach.
Continue Reading

Chief Compliance Officers: Know When and How to Resign

Few chief compliance officers want to resign for any reason other than accepting a better offer at another firm. The reality, however, is that CCOs may find themselves in positions where, for compliance reasons and to protect their own career credibility, they have little choice but to consider resignation. The key is recognizing when those times arise and knowing how to extricate themselves from their errant firms safely.
Continue Reading

Associations and Firms Want SEC/DOL Coordination on Standard of Conduct

More than 90 comments have been received by the SEC to date in response to agency chairman Jay Clayton’s June 1 call for comments in regard to standards of conduct for investment advisers and broker-dealers. Among the trends emerging from the comments received to date is that the SEC, in coordination with the Department of Labor, create a separate standard of conduct for broker-dealers.
Continue Reading

OCIE Finds Increased Cybersecurity But Wants More

The SEC’s Office of Compliance Inspections and Evaluations on August 7 made public its observations from its most recent round of cybersecurity exams – and what it found is encouraging only to a point. The message delivered by OCIE in its National Exam Program risk alert was this: Advisory firms, broker-dealers and investment companies have made strides in providing cybersecurity, but there is still a long way to go.
Continue Reading

Revenue Sharing in Exchange for Investments May Be a Conflict

Perception counts. Consider a third-party broker-dealer offering an adviser compensation in exchange for investing client dollars in certain mutual funds available on the broker’s platform. The SEC is likely to perceive that compensation as a conflict of interest. It’s not so much whether the adviser follows through and makes those favored investments – it’s that the financial incentive to make them exists.
Continue Reading