One of the more frequently asked questions our team at Jacko Law Group, PC (“JLG”) answers is whether to (and how to) respond when contacted by the state or federal securities regulators, including the U.S. Securities and Exchange Commission (“SEC”).
You have successfully formed your investment advisory firm and your business is up and running. Now you want to ensure that your firm remains in compliance with the SEC, FINRA and state regulators so that, in the event a regulatory agency DOES come knocking, you are ready to handle the examination.
Investment advisers should promptly review language used in mandated pre-dispute arbitration agreements in response to Regulatory Notice 21-16 recently issued by the Financial Industry Regulatory Authority (FINRA). The Notice serves as a cautionary yellow light for firms that may be inclined to limit investor protections by improperly including adviser-friendly terms that ignore specific FINRA disclosure requirements.
With greater scrutiny coming from the SEC, FINRA and state regulators, firms across the financial industry have turned to outsourced general counsel to assist with both regulatory compliance matters and traditional corporate counsel needs.
Firms that have seen the recently released 2021 Report on the Financial Industry Regulatory Authority’s (FINRA’s) Examination and Risk Monitoring Program (the “Report”) should be formulating plans to fortify their compliance programs based on the noteworthy findings shared from recent FINRA exams. The Report provides firms with valuable insight into 18 regulatory topics categorized by Firm Operations, Communications and Sales, Market Integrity, and Financial Management.
Financial advisers and broker-dealers should conduct thorough and frequent reviews of their clients’ holdings in certain Chinese companies now that a November Executive Order that prohibits new U.S. investments in companies with alleged ties to China’s military has taken effect.