State-Registered Investment Advisers: A Compliance Tutorial for Working with State Regulators
February 27, 2014
Tuesday 1:00 PM - 3:00 PM (ET)
In October 2013, the North American Securities Administrator Association (NASAA) issued a report based upon examinations of 1,130 state level investment advisers. The examinations found 6,482 deficiencies in 20 categories that included books and records, financials, privacy, advertising, and supervisory/compliance, to name a few. NASAA’s Coordinated Exams Program is a biennial initiative conducted to identify common investment adviser deficiencies.
NRS has gleaned from the 2013 and 2011 NASAA Reports best practices that should be followed by every state registered investment adviser. The NRS panel will provide practical insight and perspectives on the following identified best practices:
- Review and revise the Form ADV and disclosure brochure annually to reflect current and accurate information
- Review and update contracts
- Prepare and maintain all required records, including financial records
- Prepare and maintain client profiles
- Prepare a written compliance and supervisory procedures manual relevant to the type of business
- Keep accurate financials. File with the jurisdiction in a timely manner. Maintain surety bond if required
- Calculate and document fees correctly, in accordance with contracts and ADV
- Review and revise all advertisements, including Web sites and performance advertising, for accuracy
- Implement appropriate custody safeguards, if applicable
- Review solicitor agreements, disclosure, and delivery procedures
The speakers will also discuss how to effectively respond to inquiries from state regulators and how to best access information regarding state laws, rules and regulations.
A well-run state-registered investment adviser can easily turn these best practices into everyday practices, which will, in turn, provide a strong framework for working effectively with state regulators.
After attending this course, attendees should be able to:
- Identify the elements of a well-run and compliant state-registered investment advisory firm to protect the firm and investors
- Use regulations and best practices to develop a robust compliance program that will withstand regulatory scrutiny
- Identify resources to explore specific states’ regulations to keep current with regulatory developments
- Work effectively with state regulators for the mutual benefit of the firm, its clients, compliance professionals and regulators.
Designed to increase the professional competence of investment adviser professionals with legal, compliance and management responsibilities
Suggested Skill Level: Basic
Instructional Method: Group Internet-Based
Prerequisites for Participation: No prerequisites are required. However, attendees can benefit by reviewing the Investment Advisers Act of 1940 to become familiar with the structure and terms.
Advance Preparation: None
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