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It is anticipated that tomorrow, April 6th, the Department of Labor (DOL) is going to release to the public its new fiduciary rule whereby you will need to consider your ongoing RIA compliance requirements.  As many firms are considering the implications of this new rule on their business model, I would like to share with you an article prepared by ThinkAdvisor titled, 5 Questions Every Firm Should Ask About DOL Fiduciary Rule in anticipation of the release of the new fiduciary rule.  As you prepare your firm, this article provides good tips on what to consider.

In the past, I have encountered clients who ask for an RIA compliance consultation because an Advisor’s client has passed away.  The first question is what do I do immediately?  It is important to refer back to the engagement letter you have with the client as, often, this document will help give you guidance on your next steps.  Next, provided the client has prepared an estate plan and you have been involved in the planning process, reaching out to the client’s attorney would be the next logical step. Following with this same thought process, I recently came across an excellent article prepared by WealthCounsel titled Revocable Trusts May be the Solution to your Client’s Needs.  This piece addresses the positive aspects of estate planning for your advisory clients while also allowing you, as the investment advisor, to help your client think through a seamless transition of their assets to meet their ultimate goals. As you work with your clients, address the important need for estate planning so that they may have comfort in knowing their assets will be disposed of in the way in which they want. I encourage you to read this article.

Tomorrow, March 30^th is the deadline for Annual Amendments to be filed on the IARD system.  This is an important filing for registered investment advisors and should not be missed.  SEC registered investment advisors will need to pay the SEC fee assessed on their regulatory assets under management reported on the Annual Amendment filing, before the filing can be submitted.  Use FINRA’s e-bill system to make that payment today to ensure your ability to submit your filing online tomorrow!

SEC to Hold National Compliance Outreach Seminar for Investment Companies and Investment Advisers

The Securities and Exchange Commission recently issued a press release opening the registration for its compliance outreach program’s national seminar for investment companies and investment advisers.  The event is intended to help Chief Compliance Officers (CCOs) and other senior personnel at investment companies and investment advisory firms enhance their compliance programs for the protection of investors.

The SEC’s Office of Compliance Inspections and Examinations (OCIE), Division of Investment Management, and the Asset Management Unit of the Division of Enforcement jointly sponsor the compliance outreach program.  The national seminar will be held on April 19 at the SEC’s Washington, D.C., headquarters from 8:30 a.m. to 5:30 p.m. ET.  In-person attendance is limited to 500; a live webcast will be available at www.sec.gov.

Click here for the seminar agenda. Topics to be discussed include OCIE’s program priorities in 2016, private fund adviser issues, compliance, and rulemaking.

As an update for Investment Compliance Services, today, the SEC issued a Press Release announcing the creation of the Office of Risk and Strategy for its National Exam Program within the Office of Compliance Inspections and Examinations (OCIE).  This new office will consolidate OCIE’s risk assessment, market surveillance and quantitative analysis teams and provide operational risk management and organizational strategy for OCIE.  Peter B. Driscoll will manage the new office and be named the Chief Risk and Strategy Officer.

OCIE examines SEC-registered investment advisers to ensure compliance with the security laws.  Annually, the agency examines approximately 10% of the more than 11,500 registered investment advisors within its purview and has been seeking ways to increase their oversight of RIAs.  Recent reports indicate that the SEC seeks to increase the number of RIA examiners by about 20% this year to 630.

With this increase in RIA examiners, federally registered firms that have never been examined can be assured they will be hearing from the SEC in the very near future.  Be prepared and review your books and records requirements now, particularly your Form ADV and Brochure to confirm all are still current and update to date.   If you need assistance or have questions, contact Registered Advisor Services today!

Are you in need of investment transition advising to file with the appropriate regulator?  Did you recently complete your annual amendment filing reporting $100 million or more in regulatory assets under management?  If so, and you are currently a state registered firm, are you aware that you now need to transition your firm’s state registration to federal registration with the Securities and Exchange Commission (SEC)?  Your requirement to transition your firm’s registration is 90 days after the March 31 deadline for filing your annual amendment.  Do you know what happens to your Investment Advisor Representatives individual state registrations?  These are all important questions you need to have answered by an experienced RIA compliance consultant usa.  If you are at a cross roads not knowing where to turn to understand all the timing and filing requirements call Registered Advisor Services today for a consultation to help simplify the process!

As investment advisors consider their RIA compliance services solutions, many firms utilize cloud based providers to store their firm’s files and information.  Such a solution is typically cost effective and easy to utilize as most investment advisors are trying to go paperless these days.  Although cloud solutions are a great way to help achieve that goal, it is very important that before you sign on for such a service that you carefully explore what systems and protocols the service provider has in place to protect your investment advisor firm’s information.  Recently, I came across a blog by CompWALK where they outlined 13 questions you need to ask your data center provider.  If you are currently with a cloud based provider, this outline is relevant to consider if your current provider can meet these important benchmarks. It is a well written and easy to read blog.  I recommend that you consider each of the 13 questions raised to determine if your provider is a good fit.

Welcome to March 1^st!  With Spring right around the corner, so is your filing requirement for your Annual Amendment Form ADV, if your registered investment advisor firm’s fiscal year end is December.  This filing reports your regulatory assets under management, number of accounts, types of clients, and any other changes to your Form ADV that may be needed at this time.  Be sure to update your documents to capture any and all changes in your business model and timely file by the March 31, 2016 deadline.  This filing helps you maintain compliance with both the state and federal regulatory requirements.

If your investment advisory firm is state registered, remember that you may have state specific filing requirements, in addition to your annual amendment filing that are also due by this March deadline.  The common filing requirement is to provide your December 31 financial statements to the state regulator.  Stay in compliance with your firms state regulations by submitting these documents in a timely manner.

If you need assistance with your ongoing compliance requirements, contact Registered Advisor Services for assistance!

Registered Advisor Services has been in business five years this month helping clients become independent registered investment advisor firms and assisting other RIA firms with ongoing compliance needs.  It has been our pleasure to work with a great group of clients and have enjoyed the thoughtful interactions.  We look forward to continued years of success providing services to the financial services industry.  Thank you to all of our loyal clients!