Keeping on the right side of regulators is the life blood of investment advisor firms’ compliance officers, but what specifically is on their minds right now?
Top of the list is the SEC’s Marketing Rule for Investment Advisors which came into effect in November 2022, with advertising/marketing ranked as the hottest topic for 70% of investment advisor firm’s chief compliance officers according to new research from the Investment Adviser Association.
The newly released 2023 Investment Management Compliance Testing Survey also reveals that cybersecurity is second (52% cited this) and electronic communications surveillance (35%) which climbed to third this year, the 18th year the poll has been conducted.
“The persistent dominance of the SEC’s Marketing Rule as the primary worry for investment advisor compliance officers underscores the critical need for proactive adaptation,” said Carlo di Florio, global advisory leader at risk advisory firm ACA Group. “The close contenders, cybersecurity and electronic communications, demand proactive measures to safeguard client data and maintain regulatory compliance. Only through proactive efforts can advisors thrive amidst these pressing challenges.”
Other key areas noted align with the SEC’s exam, enforcement, and rulemaking priorities, including:
Following a warning from the SEC that some advisors were identified in recent examinations as having inadequate compliance policies and procedures, the IAA survey found that firms are acting to boost their compliance regimes.
This includes 58% of respondents either currently going through an SEC exam or having taken one in the last five years.
Almost two thirds of firms are planning to run mock SEC exams with 82% saying this preparing them for an actual SEC exam and identifying issues and best practice enhancements.
LPL Financial and Raymond James also add independent advisors from Osaic and Edward Jones in Michigan and Arizona.
The SEC-registered RIA advises on more than $1 billion in client assets, with no advisory fee through 2027 and no human financial advisors.
95.8% of house trades were winners. For clients? The SEC says just 14.9%.
The complaint says Duolingo added friction on purpose, then lied about it.
The four wirehouse firms lost 1,449 experienced advisors and recruited 932 in the first six months of the year, according to Diamond Consultants.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
