Regulatory Compliance E-newsletter – July 2017

Feature of the Month

NRS Fall 2017 Compliance Conference – October 23 – 26, Las Vegas, NV

As a compliance professional at an investment adviser or broker-dealer firm, you know that the SEC, FINRA and DOL require that you: a) thoroughly understand the many rules, cases, no-action letters, guidance statements, risk alerts, etc. that govern your business; and b) create, test and enforce policies and procedures that apply these requirements to your firm’s specific needs. The NRS Fall 2017 Compliance Conference – Customizing Your Compliance Solutions provides the cutting edge know-how you need to develop a workable, effective compliance program plus the latest compliance news and the most thorough look at the current regulatory landscape.

Our agenda sessions have been designed to give you the insight and tools that will transform the tangle of one-size-fits-all rules and requirements into a smooth-running compliance system that you can custom-design to your firm’s unique business.

How do we do this? By combining more than 30 years of providing compliance education with:

  • Highly-regarded speakers
  • Veteran industry professionals
  • Hands-on workshops
  • Unrivalled networking
  • Actionable takeaways
  • Solutions-driven exhibitors

Join us at the Four Seasons Hotel in Las Vegas, NV this October where:

  • Regulators from the SEC, FINRA and NASAA will give a regulatory perspective
  • Cybersecurity recent developments that impact your firm are addressed
  • New Form ADV Amendments Effective October 2017, Tools for Buying and Selling Securities Firms and Machine Learning & Artificial Intelligence: Compliance Considerations are sessions
  • Industry experts on the front lines of compliance speak on 22 additional sessions
  • CPE, CLE, CFP and IACCP continuing education credits can be earned
  • NRS Subject Matter Experts will be on-hand to answer your compliance questions

Register today to save $200 and secure your spot for a complimentary copy of the soon to be released book Volume II of Modern Compliance: Best Practices for Securities and Finance. NRS is pleased to provide the first 225 people to register for the main conference with one complimentary copy, a $275 value, of Volume II of Modern Compliance: Best Practices and Finance. Attendees can pick up their copy of the book on-site at the conference registration desk.

Past conference attendees have included:

Chief Compliance Officers / Investment Advisers / General Counsels / Broker-Dealers
Managing Directors / Chief Financial Officers / Regulatory Analysts / Wealth Advisors / Attorneys
Portfolio Managers / Securities Examiners / Executive Vice President’s / Compliance Managers
Financial Planners / Operations Managers / Traders / Financial Service Professionals

Take a step to stay ahead of compliance expectations and register today for the NRS Fall 2017 Compliance Conference.

The knowledge and skills you develop in Vegas will definitely not stay in Vegas!

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Are you ready to distinguish yourself among compliance professionals by earning an investment adviser compliance designation?

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.

The NRS IACCP program:

  • Provides participants and their firms with a solid understanding of current regulations and rules required for investment advisers
  • 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 you from other compliance professionals
  • Allows firms that educate 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 your firm’s commitment to compliance.

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 then be applied for future credit toward the IACCP Program requirements.

Start your professional development program this summer by attending online courses or in-person courses presented as part of the NRS Investment Adviser Compliance Symposia in two cities:

Chicago July 25 – 27, 2017
Boston August 15 – 17, 2017


Strengthen your firm’s compliance program and advance your compliance career with opportunities from NRS Education.

  • NRS Investment Adviser Certified Compliance Professional® (IACCP®) Program
  • NRS Investment Adviser Core Compliance Program

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SEC Moving Ahead on Fiduciary Rule

Making good on promises made in their June 1 request for information, the Securities Exchange Commission (SEC) has confirmed plans to work directly with the Department of Labor to create a coordinated fiduciary rule. During a hearing of the Senate Subcommittee on Financial Services and General Government, SEC Chairman John Clayton said, “what’s happening at the Department of Labor is going to affect the markets [the SEC] regulates and vice versa.”

Senator Jerry Moran of Kansas directly asked the Chairman if there would be a “level of cooperation” between the two government entities, which has not yet been seen. Chairman Clayton responded that he is, “confident that we’re going to have cooperation in this regard. It’s a very complicated issue. I don’t think it would have been here this long if it weren’t complex, but I’m confident that we’re going to cooperate.”

For investment advisers and broker-dealers whose clients fall under the Department of Labor’s fiduciary rule, the need for cooperation between the Department and the SEC is clear. As Chairman Clayton observed, adoption of the fiduciary rule will affect the practices of financial services firms and markets regulated by the SEC. Having a defined and coordinated rule shared between the two government bodies is imperative for those dealing with compliance.

NRS will continue to monitor developments at both the Department of Labor and the SEC with regard to the fiduciary rule. If you have any questions about your firm’s current compliance with the Department of Labor’s Fiduciary Rule, or how further developments may affect your business, please contact us today.

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What Is Causing the Increase in Cyber Attacks?

The Shocking Statistics

A report published by the Depository Trust & Clearing Corporation at the end of 2016 found that 78% of financial firms ranked cyber risk as one of their top five concerns, with 22% naming it as their top concern. Close to 50% of financial firms say the probability of a “high-impact event” on the global financial system has intensified. Some 66% of firms say that over the past year, they have added more resources to detect and mitigate “systemic risks,” which also reflects this growing awareness and industry focus.

Truly, the landscape of cybersecurity resembles a war zone, and both FINRA and the SEC have promised to focus exam priorities on cybersecurity risk management and governance structures. At the same time, firms, representatives, and their clients must be vigilant in protecting personal and confidential financial information. Only then can an effective cybersecurity program be realized.

NRS has created 2 new Firm Element CE courses that address this vital issue:

Cybersecurity for Representatives and Clients

This course describes the importance of a cybersecurity program, the tactics used to hack into a firm’s systems, and ways that representatives and their clients can prevent these breaches. Best practices for employees who handle confidential and sensitive information are discussed, and examples are given for the specific information that must be protected. Finally, the course describes FINRA’s recent focus on specific aspects of cybersecurity such as cloud storage, crowdfunding, and customer account protection.

Cybersecurity for Firms

This course describes the importance of a cybersecurity program, beginning with FINRA’s perspective from its 2014 cybersecurity sweep and subsequent Report on Cybersecurity Practices, which includes the top three cybersecurity threats. The course explores the tactics used to hack into a firm’s systems and ways that firms and employees can prevent these breaches. Best practices for employees who handle confidential and sensitive information are discussed, and examples are given for the specific information that must be protected. Finally, FINRA’s eight resources for developing and advancing a firm’s cybersecurity program are laid out. Case studies and examples throughout the course help illustrate the need for a strict cybersecurity program.

To learn more about NRS and FIRE solutions contact us

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Mutual Fund Companies and Investment Advisers Benefit from the use of Ad Review technology.

The NRS Ad Review product isn’t just for broker-dealers and investment advisors. Many of our clients are mutual fund companies and Investment Advisers who are subject to advertising regulations that benefit from the automation, efficiency and ease-of-use of a SaaS technology solution. The volume of submissions, in combination with review, recordkeeping and FINRA filing requirements, can quickly become overwhelming without a solid process built on a reliable system.

With NRS you get…

  • Peace of Mind – 17a-4 Compliance
  • Efficiencies – Bi-directional FINRA Integration
  • East of Adoption – Custom Submission Form and Workflow to match your Policies and Procedures
  • Safeguards – Automated Email Alerts to Remind Users of Critical Tasks

You’re not alone. Let NRS show you how we have helped many other mutual fund companies and investment advisers overcome similar challenges. Contact us to get started, and get on a path to master your advertising compliance obligations.

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