MasterCompliance continues to provide clients and the public with guidance on industry focus areas, new rules, compliance foundations, and regulatory priorities. This blog explores our top 5 blogs of 2021.
1. Form ADV Part 2B: Disclosures for Supervised Persons
Form ADV Part 2B is a brochure supplement that must contain certain information about specific individuals, acting on behalf of the investment adviser, who actually provide the investment advice and interact with the client. The brochure supplement is also a narrative format in plain English and includes six required disclosure categories, with a seventh for advisers registered or are registering with one or more state securities authorities. Our “Form ADV Part 2B: Disclosures for Supervised Persons” blog breaks down these sections, giving you’re a brief summary of what should be included in each.
2.What Should an RIA’s Training Plan Cover?
Registered investment advisers (“RIAs”) should ensure training is assigned periodically to keep covered persons up to date on industry and product related topics. In planning, developing, and implementing an RIA’s training plan, firms should consider its size, structure, and the scope of its business activities, as well as any regulatory developments. After training is assigned, it is important to follow up to ensure completion by all assigned individuals. Our “What Should an RIA’s Training Plan Cover?” blog discusses key factors for RIAs to consider when designing their training programs, such as customer complaints and regulatory issues.
3. Brochure Delivery Requirements
Our “Brochure Delivery Requirements” blog discusses the delivery requirements for Part 2A of the Form ADV for both SEC registered advisers and state registered advisers. We also cover the delivery requirements of the brochure supplements and the exemptions from the delivery requirements of the brochure rule under both state and federal law.
4. Filing A Suspicious Activity Report (“SAR”)
The Financial Crimes Enforcement Network requires certain financial institutions to file a Suspicious Activities Reports (“SAR”) to report suspicious transactions, as detailed in their FinCEN SAR Electronic Filing Instructions. Our “Filing A Suspicious Activity Report (“SAR”)” blog goes over some of the important aspects of filing a Suspicious Activity Report.
5. State Exemptions from Investment Advisor Registration
Our “State Exemptions from Investment Advisor Registration” blog explains how investment advisers can qualify for an exemption from state registration, by either qualifying under the Investment Act of 1940, being a federal covered adviser, or being registered with the SEC. We also discuss the Dodd-Frank Act, and the 3 assets under management (“AUM”) thresholds for investment advisers as well as some more general exclusions.
MasterCompliance provides expert consulting, outsourcing, and implementation tools in planning and budgeting your firm’s compliance responsibilities. If there are any areas where you would like to explore additional assistance or services, please contact us.
