Regulatory Compliance E-newsletter - July2013
Posted On 7/31/2013 12:00:00 PM
Feature of the Month
Differentiate yourself and your firm by earning the NRS IACCP® Designation
Many investment adviser compliance professionals include education in their 2013 plans as a way to both help advance their careers and stay up-to-date on the current regulatory and compliance requirements and initiatives. Often, a standard reaction of compliance professionals is taking a course when a new SEC rule is released. While this response fills an important need, the industry is demanding a more structured and encompassing approach to investment adviser compliance education.
The NRS Investment Adviser Certified Compliance Professional (IACCP®) Program®, co-sponsored with the Investment Adviser Association (IAA), is a professional education program granting the designation, Investment Adviser Certified Compliance Professional (IACCP), to individuals who complete an online and/or in-person instructor-led program of study, pass a certifying examination, and meet its work experience, ethics and continuing education requirements. Since the program’s inception, 418 IACCP® designees have earned this industry-wide designation.
The NRS IACCP program:
- Provides participants and their firms with a solid understanding of current regulations and rules required for investment advisers, including the latest rule changes mandated by the Dodd-Frank Act
- Provides resources to help strengthen the firm’s compliance program and promote continuous learning within the firm
- Encourages candidates to apply what they learn as they learn it
- Signals recognition of advanced compliance knowledge and skill level to help differentiate participants from other compliance professionals
- Allows firms that train compliance personnel to add another cost- and time-effective risk management tool
- Demonstrates the firm’s commitment to an educated workforce and a strong culture of compliance
- Helps advance compliance as a profession
- Supports the community of compliance professionals
Earning the IACCP designation helps identify you as a committed compliance leader and demonstrates the firm’s commitment to compliance.
For more information or to enroll, call 1-860-435-0200. The Fall semester begins in August.
For those who want to take the first step toward advancing their investment adviser compliance education with a less intensive curriculum, the NRS Investment Adviser Core Compliance Program provides a foundation with focus on the first level of compliance courses. By completing 10 courses and submitting an Ethics assessment, compliance professionals can earn a Certificate of Achievement, which can also be applied for credit in the future toward the IACCP Program requirements. Review the Core program requirements.
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Are your policies and procedures out of date?
Do you have an adequate system for updating your policies and procedures? Firms not only need strong policies and procedures that are written in a manner that shows that their firm has an appropriate supervisory structure that will protect both the firm and investors but firms must also show that their policies and procedures are periodically reviewed and updated. Let NRS ComplianceGuardian Policy Architect Module review and update your policies and procedures for you. The process is simple.
- Subscribe to ComplianceGuardian Policy Architect Module
- Copy your current Policies and Procedures Manual to the ComplianceGuardian platform
- View NRS recommended regulatory requirements and regulatory changes each quarter
- Accept NRS recommendations and update your manual with the simple click of your mouse
Once your policies and procedures are inserted and updated with Policy Architect you can then:
- Push the manual to required and permissioned individuals and/or groups
- Obtain attestations
- Maintain an audit trail for electronic record keeping.
Sign-up for a demo today to find out the how Policy Architect can save you time and give you piece of mind.
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NRS Fall Investment Adviser and Broker-Dealer Compliance Conference
October 9-11, 2013 - Four Seasons Hotel Las Vegas, Nevada
The place for up-to-the-minute news on critical rules, cases and regulatory interpretations and also one of the industry’s best opportunities to earn continuing education credits.
- Daniel Sibears, EVP Member Regulation Programs, FINRA
- Ida Wurczinger Draim, Partner, Schulte Roth & Zabel
- Jennifer L. Klass, Partner, Morgan, Lewis & Bockius
- Gerald Russello, Partner, Sidley Austin
- John Walsh, Partner, Sutherland
Attend this conference to:
- Hear regulatory examination and enforcement priorities
- Expand your network of compliance professionals
- Benefit from real world best practices from exceptional compliance experts
- Benefit from dedicated professional pathways for IAs, BDs, Private Funds and Dual Registrants
Best value registration ends on August 30, 2013 – register early to save $300 – CLICK HERE
NEW FOR 2013 - ‘Foundations of Compliance’ Training– find out more information here
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JOBS Act Mandated 506 Amendments
Last spring, Congress passed the Jumpstart Our Business Startups Act (JOBS Act) which required, among other things, that the SEC eliminate the prohibition on general solicitation or advertising for offerings of securities that are exempt from registration in reliance on Rule 506 so long as sales are limited to accredited investors and the issuer takes reasonable steps to verify the accredited status of all purchasers of the securities. In August 2012, the Commission proposed rule amendments to comply with this directive and on Wednesday, July 10th, the final rule was adopted.
The amendments permit an issuer, such as a private fund, to engage in general solicitations or general advertising in connection with the offer and sale of securities under Rule 506, provided the issuer takes reasonable steps to verify that all purchasers are accredited investors. Accredited investors are defined at Rule 501. In addition to six categories of institutional investors, such as banks and broker dealers, accredited investors include certain natural persons with an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person or an income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
Whether or not the steps taken to verify the accredited status of a purchaser are reasonable is an objective determination based on the facts and circumstances of the purchaser and the offering. In order to provide some clarity, the Commission offered certain non-exclusive methods of verifying accredited status that would typically be considered reasonable under most circumstances. For natural persons, the appropriate methods to verify the status would depend on whether the status is based on income or net worth. To substantiate a claim of accredited status on the basis of income, the SEC suggests, the private fund may review copies of any IRS form that reports the income of the purchaser for the two most recent years and obtain a written representation that the purchaser will likely earn the required income in the current year as well. If a natural person purchaser claims to be accredited on the basis of net worth, the private fund can review documents such as bank and brokerage statements and appraisal reports prepared by independent third parties, among other things, to verify assets and a consumer credit report to verify liabilities.
For full white paper on this topic visit, www.nrs-inc.com/PF/advertising.
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