Registered Investment Advisor. As a registered investment advisor, you are a fiduciary on behalf of your clients. You have a responsibility to select broker-dealers and execute client trades that seek to obtain ‘best execution’ taking into consideration the circumstances of the particular transaction.
Recently, the Office of Compliance Inspections and Examinations (OCIE) issued a Risk Alert outlining the most common deficiencies associated with a registered investment advisor obligation to seek best execution on behalf of your advisory clients.
Here are the topics included within that Risk Alert:
- Best execution reviews were not performed;
- Materially relevant factors were not considered during best execution reviews;
- Comparisons from other broker-dealers were not sought;
- Best execution practices were not fully disclosed;
- Soft dollar arrangements were not disclosed;
- Not properly administering mixed use allocation;
- Inadequate policies and procedures relating to best execution; and,
- Not following best execution policies and procedures.
To read the Risk Alert in its entirety, click here.
As a registered investment advisor, you have ongoing compliance requirements. Contact Registered Advisor Services today for assistance with Best Execution and other compliance requirements.
