SEC Posts 2018 Exam Priorities

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released its 2018 National Exam Program examination priorities yesterday. While most of the topics are familiar, there are a few new items of note. OCIE has divided its priorities into four categories: Retail investors including Seniors and those saving for retirement “Disclosures of the Costs of… READ MORE

SEC Risk Alert Shows Gaps in Firm Cybersecurity Programs

The SEC’s Office of Compliance Examinations and Inspections (OCIE) has released a Risk Alert with a brief summary of observations from its second round of cybersecurity exam sweeps, where it surveyed 75 broker dealers, investment advisors, and investment companies.  The Cybersecurity 2 Initiative was a more thorough follow-up to their 2014 Cybersecurity 1 Initiative.  The… READ MORE

Alert – SEC Issues Guidance Update on Inadvertent Custody

The SEC’s Division of Investment Management issued a February 2017 Guidance Update regarding situations where an adviser might inadvertently have custody. The key takeaway is that the definition of “custody” is to review agreements with qualified custodians to determine if they give an advisor the ability to withdraw or transfer client funds or securities.  If… READ MORE

Standing Letters of Authorization Clarity Provided

  Standing Letters of Authorization (SLOA) that Registered Investment Advisers use to provide services for their clients have been surrounded by uncertainty.  Does this practice constitute custody of client assets?  In a No-Action Letter dated Feb. 21, the SEC states this practice is, in fact, custody; however, the Division of Investment Management will NOT recommend… READ MORE