Investment Compliance Services nh. The Office of Compliance Inspections and Examination (OCIE) issued a Risk Alert in July 2019 after 50 examinations of RIA firms managing approximately $50 billion in assets for nearly 220,000 clients. The majority of clients were retail clients. The registered investment advisors who were identified for this examination was through a review of information about the investment advisor firm’s disciplinary events and legal actions involving supervised persons of the investment advisor.
The focus of this exam included the following areas:
- Compliance programs and supervisory oversight practices. Firms policy and procedures were reviewed to determine if they were reasonably designed to detect and prevent violations of the Advisers Act, especially previously disciplined individuals.
- Disclosures. The focus was on whether disclosures in marketing materials and documents was full and fair, included all material facts and were not misleading.
- Conflicts of interest. The regulators assessed whether the registered investment adviser identified, addressed, and fully disclosed all material conflicts of interest, especially conflicts dealing with compensation arrangement and account management.
This initiative identified a variety of deficiencies relating to RIA compliance issues, disclosure issues, including undisclosed conflicts of interest.
To read the complete Risk Alert, click here.
Registered Advisor Services helps RIA investment advisors create comprehensive compliance programs to avoid the types of deficiencies outlined within this Risk Alert. Contact Registered Advisor Services for your Investment Compliance Services nh.