ESG (Environmental, Social and Governance) products and financial services have become a popular word in the world of regulation. With the SEC’s Risk Alert on The Division of Examinations’ Review of ESG Investing and the most recent 2022 SEC Examination Priorities Report, understanding key compliance considerations to protect your Firm is vital. If your Firm provides these products and financial services, we have provided some key tips and compliance considerations. What is ESG Investing: ESG investing is a term that has many different meanings and may go by different names such as sustainable investing, socially responsible investing, and impact investing. Read more about ESG Investing[…]
Investment advisers that have custody of client funds or securities are required to undergo an annual surprise examination by an independent public accountant to verify client funds and securities. Form ADV-E is used as a cover page for a certificate of accounting of securities and funds of which the investment adviser has custody, aka a surprise exam report. Form ADV-E contains both information about the adviser and the surprise exam conducted. The Form ADV-E is filled out by the investment adviser and then submitted along with the surprise examination report or statement by the independent public accountant after a surprise inspection of the adviser.