On-Site Compliance Reviews & Assessments
Jacko Law Group, PC (“JLG”) helps firms take proactive steps required to identify and assess areas of risk, and to test the efficacy of policies and procedures that address and manage these risks effectively through the annual review process.
We conduct focused, onsite or remote risk assessments and/or annual reviews at your firm’s headquarters and at any branch and non-branch office locations upon request. As part of the process, our attorneys and team of professionals will customize their reviews to evaluate all those aspects of your business that are subject to regulatory compliance, including:
- Corporate books & records
- Accounting ledgers
- Trading & transaction records
- New account applications/investment policy statements
- Customer complaints & arbitration matters
- Associated persons’ & representatives’ files
- Advertising & marketing materials
- Written policies & procedures manuals
- Firm registration records
- Client disclosure documents & privacy notices
- Anti-money laundering program, Business Continuity Plan, regulation S-P controls & other cybersecurity controls
- Client contracts & account files
- Supervisory compliance controls
- New products & services, including controls for supervising business development & transactions
Once the risk assessment and/or annual review has been conducted, JLG provides a findings report that addresses any critical concerns that require immediate action. We identify high, medium, and low risks so that you will know where to focus your internal control efforts. We then work closely with you to develop a compliance calendar that prioritizes action items and includes a timeline for implementing enhanced controls.
Annual Reviews & GAP Analysis
Annual reviews are a yearly regulatory requirement for all SEC registered investment advisers. Pursuant to Rule 206(4)-7 of the Investment Advisers Act of 1940, a registered investment adviser must perform an annual review of its policies and procedures to ensure they are effectively designed to prevent violations of federal and other securities laws.
Similarly, a Financial Industry Regulatory Authority (FINRA) registered Broker-Dealer (BD) is required under FINRA Rule 3120 to perform testing of the firm’s supervisory procedures and controls at least annually (“gap analysis”), which is used in part to develop and complete the Annual Certification Requirement pursuant to FINRA Rule 3130.
Within an annual review and/or gap analysis, the professionals at JLG will evaluate and test the following components of your business for risk, including:
The team at JLG understands the nuances of business and stays abreast of the latest industry updates to be able to assess and address vulnerable areas of your firm’s compliance program.
Compliance Marketing Reviews
The Investment Advisers Act contains a broad proscription against “any… practice… which operates… as a fraud or deceit upon any client or prospective client.” This language has provided little guidance for investment advisers throughout the United States for more than 75 years. Firms often only learn what is permissible through specific responses made in no-action letters or through the regulatory exam process. This makes compliance with the law difficult.
Jacko Law Group, PC (“JLG”) can review your client newsletters, marketing collateral, social media, and firm advertisements in accordance with the following:
- Investment Advisers Act of 1940
- Securities Exchange Act of 1934
- Rule 206(4)-1 (SEC advertising rule)
- SEC no-action letters and guidance statements
- Financial Industry Regulatory Authority (FINRA) broker-dealer regulations
- Global Investment Performance Standards (GIPS®)
We also offer counsel to develop internal controls for the marketing review process and assist in submitting requests for no-action relief compliance through disclosure. Our professionals have years of experience in performing advertising and marketing reviews and are ready to help.
Social Media & Electronics Communications
Social media is changing the world—and the way we conduct business. There are, however, many regulatory compliance challenges to consider before using social media. As the use of social media by investment firms continues to grow, so does regulatory scrutiny over financial firms’ risk management controls. At JLG, we provide guidance for developing internal controls to mitigate potential risks surrounding your use of social media.
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