Investment Advisor policies and procedures

Investment Advisor policies and procedures.  Recently, the North American Securities Administrators Association (NASAA) published their examination overview.  They covered 1,078 investment advisor examinations during January to June 2019.  Of those examined, 292 investment advisors were examined by the state for the first time.  

The Facts!

70% of those registered investment advisor had one Investment Advisor Representative 

10% had two Investment Advisor Representatives  

63 investment advisor firms are affiliated with a broker dealer firm 

30 investment advisors advise a pooled investment vehicle  

214 investment advisors offer financial planning services

77 investment advisors acted as solicitors for other registered investment advisors

23 investment advisors pay solicitors for referrals

2019 Top 10 Deficiency Categories:

60% Books and Records;

50% Registration;

44% Contracts;

26% Cybersecurity;

21% Fees;

17% Brochure Delivery;

17% Financials;

17% Advertising;

17% Supervision;

15% Custody.

For a copy of the Full Report, click here! Registered Investment advisor firms should review their own internal policies and procedures and internal controls to confirm that their documents are current and appropriate for the size and scope of the firm. Registered Advisor Services is here to help, contact us today!

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