SEC Releases EXAMS Priorities for 2025

On Oct. 21, 2024 , the US Securities Exchange Commission (“SEC”) published a press release announcing their 2025 Examination Priorities. Many of the focus areas come as no surprise, as the SEC has diligently alerted industry and investors alike to what their areas of concern have been throughout the year. There are, however, a few areas that registrants may find require an extra review or a deeper dive.… Read More

Private Funds Adviser Charged for Integration Doctrine Violations

The Securities Exchange Commission (“SEC”) recently charged a Private Funds Adviser for violations of the Registration and Custody rules, specifically as they relate to integration doctrines.

This is the first SEC enforcement action in over ten years against an Investment Adviser for violations against the Integration Doctrine. The Integration Doctrine is set forth in Rule 152 of the Securities Act of 1933 and prevents the separating of single offerings into multiple offerings to take advantage of exemptions that would otherwise not be available if the offering was not divided.… Read More

Policies and Procedures- SEC Priorities and Areas of Scrutiny

As part of any Compliance Program, your Policies and Procedures provide one of the strongest internal controls for what to do, and when. Policies and Procedures are critical for helping to mitigate risk and provide direction to employees on how to comply with the various securities regulations that govern your business. That is why it is so important, prior to year-end, to review and update Policies and Procedures to ensure they are customized to your business practices, with consideration for new regulations and use of technology to help govern your firm.… Read More

SEC, FINRA Crack Down on “Duty of Care” Violations

Enforcement actions are once again on the rise. The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are cracking down on violations of “Duty of Care” highlighting the importance of making sure your clients’ best interests are always top of mind.… Read More

Are you a Prime Target for SEC EXAMS? Determining your Risk Quotient and How to Prepare.

A common question that investment advisers often wonder is: When is the next time the U.S. Securities and Exchange Commission (“SEC”) will examine me?

The answer to this often lies in the risk quotient tied to the firm.

When the last time the adviser was examined, new products and service offerings, and tips, referrals and complaints all factor into this. The SEC has a risk-based approach to determining when advisers should be examined which also can be driven by new rules and resources available to the SEC staff to conduct registrant examinations.… Read More

Considerations for Mergers and Acquisitions in the AI Space

Contrary to analysts’ predictions, mergers and acquisitions (M&As) did not surge as expected in the first part of the year. However, there is one area that continues to see high activity: M&As in the AI sector. Reuters reported a 42% spike in M&A transactions in technology in the first quarter of 2024, bringing in the largest share of M&A deals in that time period.… Read More

Leadership Succession Planning is a Must for Risk Mitigation

Succession planning is an integral part of any business’s long-term objectives toward continuity. It is important to have a comprehensive, frequently reviewed, and updated plan that lays the blueprint for what happens when the head of a business or other key members of the organization are on a planned or unexpected leave of absence. Businesses that do not have a succession plan could face many challenges, especially if the departure of the owner is unexpected. However, for small to midsized firms, the challenges could be crippling. … Read More

Chevron Overturned, Now What? How the Supreme Court’s Decision on Federal Regulators Can Affect You

On June 28, 2024, the Supreme Court overturned the “Chevron Doctrine,” stripping judicial discretion from regulatory agencies and putting it back in the hands of the courts. This event came as a result of a lawsuit against the US Securities and Exchange Commission (SEC), which found that the securities and finance regulatory agency overstepped its judicial power when it tried a fraud case internally and found the accused guilty of fraud.… Read More

Four Hot Topics to Consider for Your 2024 Annual Review

What should you consider when performing your annual review? With so many new regulations and amendments, it can be challenging to keep abreast of what areas the SEC is scrutinizing and expecting advisers to examine closely. You should consider first and foremost the highest risks, as well as the areas that have been in the headlines for the last several months. … Read More

Cybersecurity: Attacks, Risk Mitigation, and Regulatory Compliance

In an increasingly digital world, where financial transactions and sensitive information are often stored and transmitted electronically, investment advisers face a growing threat from cyber-attacks. The financial sector is a hot bed of sensitive personal and financial data making it a magnet for cybercriminals. … Read More

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