RIA Compliance Program Review | Oyster Consulting

SEC Issues Guidance on Form ADV Amendments – Are You Ready for October 1?

August 31, 2017

October 1 is the date that RIAs must comply with the August, 2016 amendments to the Form ADV. This month the SEC issued guidance around how a filer making an unanticipated, other-than-annual amendment should respond to the new or amended items in Item 5 and related Schedule D sections. Some advisors have indicated to the […]

SEC Issues Guidance Update on RIA Custody Rule

March 9, 2017

Understanding Custody Rule SEC Guidance The SEC’s Division of Investment Management issued a February 2017 Guidance Update to Rule 206(4)-2 (the Custody Rule) under the Investment Advisers Act of 1940 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 […]

Understanding SEC Custody Rules: From SLOAs to Login Credentials

March 7, 2017

For Registered Investment Advisors (RIAs), compliance with the SEC’s custody rule is an ongoing challenge—especially when custody is unintentionally triggered by day-to-day activities. Most advisors use qualified custodians, but certain actions—even those made in the name of client service—can result in a firm being deemed to have custody of client assets. The consequences can be […]

Alert – The SEC Division of Investment Management Issues Robo Advisor Guidance Update

March 2, 2017

Regulators are taking a close look at electronic investment advice. After specifically mentioning the topic in the SEC’s 2017 Exam Priorities Letter, last week the SEC Division of Investment Management issued a Guidance Update covering: Disclosures to be made about the robo-advisor and the services offered Advisor’s obligation to obtain client information necessary to providing […]

Protect Senior Investor and Vulnerable Adult Clients

October 27, 2016

The challenge of diminished capacity presents a major risk to your clients and their families if they are not prepared. It also presents a risk to the firm if you are not aware of how to address these issues. As the number of vulnerable investor exploitation claims grows, FINRA and the SEC have increased their […]

SEC Form ADV Revisions – Performance Books and Records Retention

October 18, 2016

Whether it is part of your annual 206(4)-7 testing or a routine on your compliance calendar, making sure your records are in order is a basic requirement. On August 25, 2016, the SEC adopted multiple amendments to Part 1A of Form ADV (“Form ADV”), which include amendments to the books and records rule under the […]

Performance-Based Fees – Net Worth Test Threshold Increases to $2.1m

July 12, 2016

The SEC has increased the net worth test threshold applied to “qualified clients” to $2.1 million. Qualified clients that enter into advisory contracts in reliance on the net worth test prior to the effective date will be “grandfathered” in, under the prior net worth threshold. The new requirement is effective August 15, 2016. The SEC […]

Fiduciary Status Under The New DOL Rule — Frequently Asked Questions

July 6, 2016

On April 6, 2016, the U.S. Department of Labor (DOL) released its final regulation (DOL Rule) defining fiduciary, which expands the circumstances under which financial professionals become fiduciaries for purposes of ERISA and the prohibited transaction provisions of the Internal Revenue Code, as a result of providing investment advice. The DOL also issued two new […]

New SEC Rule – Plan to Fail

June 30, 2016

Benjamin Franklin once said “If you fail to plan, you are planning to fail”. But the SEC this week issued a new rule proposal that requires you to create a plan to fail. And it is a really good idea. The proposed rule will require SEC-registered investment advisors to adopt and implement written business continuity […]

The Challenge of Complying with Multiple and Differing Fiduciary Rules

June 8, 2016

For nearly eight decades, financial advisors[1] have been subject to federal and state securities laws, regulations and SRO rules regulating the type of service they provide to clients – investment advice, brokerage transactions, the sale of insurance products, and other services. The most recently enacted federal regulation – the Department of Labor fiduciary rule — […]

Political Contributions – Managing the Pay to Play Rule

June 1, 2016

If you live in the United States, it is impossible to avoid the constant chatter about the upcoming Presidential elections. And as the weather warms, the local and state elections are starting to heat up too. It is also a good time for advisors to remind employees of their obligations under MSRB Rule G-37 and […]

The Department of Labor’s Proposed Fiduciary Rule: What Investment Advisors Should Be Doing Now

April 20, 2016

The new Department of Labor (“DOL”) Rule changes the definition of “fiduciary” under the Employee Retirement Income Security Act (“ERISA”), expanding the universe of financial professionals who would be deemed to be fiduciaries. Most of the Rule’s requirements become effective April 10, 2017. The full disclosure provisions, the policies and procedures requirements, and the contract […]

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