January 21, 2021

Blog | MasterCompliance

  • Change to New York IAR Registration
    On December 1, 2020, the state of New York adopted new regulations that amended its Investment Advisory Act to require the registration of investment adviser representatives (“IAR”) including principals, supervisors, and solicitors through the WebCRD/IARD system. Prior to the rule change, New York was the only state that did not license IAR via the WebCRD/IARD system. The change to to New York IAR registration will go into effect on February 1, 2021 for all new registrants, and December 2, 2021 for any New York IARs already providing services, provided they apply for registration by August 31, 2021. The Amendments The Read More....
  • Buying A Broker Dealer: Pros and Cons
    Considerations for Buying a Broker Dealer If you find yourself in need of a broker dealer, you have the option to either buy an existing one or start one from scratch. MasterCompliance has years of experience in both brokering broker dealer transactions as well as assisting our clients create new broker dealers, and in our experience buying a broker dealer tends to be the most popular choice. While the speed and convenience of buying a broker dealer are favorable, there are pros and cons to this option you should consider. Pros of Buying a Broker Dealer Faster There is a Read More....
  • Exclusions from the Definition Investment Advisor
    Previously we covered Investment Advisor Registration in our blog When Do You Have to Register as an Investment Adviser?, discussing what the Investment Advisors Act of 1940 defines as an investment advisor and what triggers the registration requirements. In this blog, we will focus on the exclusions from the definition of investment advisor at the federal and state level. Federal Exclusions from the Definition of Investment Advisor For federal registration, there are six primary exclusions: Banks as defined in the Bank Holding Company Act of 1956. Lawyers, accountants, teachers, or engineers whose advice is solely incidental to the practice of Read More....
  • FINRA’s Top Priorities for 2021
    Early in the year, FINRA released their 2021 Report on FINRA’s Examination and Risk Monitoring Program, which is designed to inform member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations. In this report detailing FINRA’s top priorities for 2021, FINRA addresses 18 regulatory areas which are grouped into 4 categories: (1) Firm Operations, (2) Communications and Sales, (3) Market Integrity, and (4) Financial Management. From these 18 regulatory areas, FINRA highlights 6 that they feel are the most important and affect a large portion of member firms, which are as follows: Regulation Best Interest (Reg BI) Read More....
  • Changing the Definition of “Accredited Investor”
    The changes to the definition of “Accredited Investor” that the SEC approved in August of 2020 officially went into effect on December 8th. The changes now allow people to qualify based on factors other than net worth. Now individuals will be able to qualify as an Accredited Investor based on clear measures of financial sophistication, such as professional knowledge and experience or certifications in addition to the traditional test for income or net worth. The change also expanded and updated the list of entities that can meet the definition an participate in certain private offerings. The SEC’s intentions with the Read More....
  • When Do You Have to Register as an Investment Adviser?
    The Investment Advisers Act of 1940 defines an investment adviser as any person who, for compensation, engages in the business of advising others as too the value of securities or the advisability of investing in securities or, as part of regular business, issues analyses or reports concerning securities. Any person who is considered an investment adviser will be subject to the Investment Adviser Act of 1940 and be required to register with either the SEC or the States. A person would be considered an investment adviser if they engaged in these three activities: Provides investment advice, reports, or analysis with Read More....