On Wednesday, December 16, 2020 at 10:00 am, it is looking highly like that the U.S. Securities and Exchange Commission will adopt amendments to the advertising rules under the Investment Advisers Act of 1940. If you are interested, here is a link to the notice announcing the meeting (and the likely vote). The hearing will be availableContinue reading “SEC Likely to Adopt New Advertising Rules for Investment Advisers”
Author Archives: AdviserCounsel
New York Investment Adviser Representatives to Become Subject to Licensing (Finally)
On December 1, 2020, New York Attorney General James announced rules that will require the licensing of investment adviser representatives (“IARs”) in New York. IARs will be required to register through the Central Registration Depository/Investment Adviser Registration Depository. If you render investment advice from a place of business in New York, now is the timeContinue reading “New York Investment Adviser Representatives to Become Subject to Licensing (Finally)”
NASAA Proposes Model Rule for Continuing Education With A Number of Shortcomings
I applaud the North American Securities Administrators Association (“NASAA”) for proposing a model rule to assist state securities regulators in implementing a mandatory continuing education program for investment adviser representatives (“IAR”) in their jurisdiction. These efforts are long overdue to convince the public that the rendering of financial advice is a legitimate profession. A copyContinue reading “NASAA Proposes Model Rule for Continuing Education With A Number of Shortcomings”
Most Common Reasons For Seeking Independence – Start Your Own RIA
I work almost exclusively with independent investment advisers. My most typical client is someone who has, for one reason or another, become disillusioned with their current employer or business partner. The three most common refrains I hear from clients and prospective clients considering independence are: Restrictions. They feel like they are unnecessarily restricted or burdenedContinue reading “Most Common Reasons For Seeking Independence – Start Your Own RIA”
Branch Office Supervision in Light of OCIE Guidance
On Monday, OCIE released a Risk Alert focused on their recent observations from focused examinations of investment advisers that operate out of multiple locations or branch offices. I provided a summary of that guidance here. So what does this mean for investment advisers who operate multiple offices or branch offices? Advisers should review their policies andContinue reading “Branch Office Supervision in Light of OCIE Guidance”
Risk Alert Following OCIE Examinations on Branch Offices
Today, OCIE released a Risk Alert focused on their recent observations from focused examinations of investment advisers that operate out of multiple locations or branch offices. These examinations focused on whether the examined investment advisers had adopted and implemented reasonably designed written policies and procedures and implemented investment advice in an appropriate manner. As aContinue reading “Risk Alert Following OCIE Examinations on Branch Offices”
Determining Whether a Client Can Invest in a Private Investment
I often receive questions from investment advisers on whether their clients can invest in a hedge fund, private equity fund, private company or some other type of private investment. For purposes of this article, I refer to them all as “private investments”. For example, clients will ask “can John Doe’s Trust invest in 123 Capital,Continue reading “Determining Whether a Client Can Invest in a Private Investment”
SEC Should Provide Clear Guidance Following Two Ocean Crypto Banking Relief
On October 26, 2020, the Wyoming Division of Banking issued “no-action” relief to Two Ocean Trust stating that i) Two Ocean is permitted to provide custodial services for both digital and traditional assets under Wyoming law, and (ii) that Two Oceancan refer to itself as a “qualified custodian” as that term is defined under the InvestmentContinue reading “SEC Should Provide Clear Guidance Following Two Ocean Crypto Banking Relief”
A Growing Trend for RIAs – Become a One-Stop Shop
As of October 1, 2020, out of 13,810 investment advisers registered with the U.S. Securities and Exchange Commission (SEC), more than 200 reported being actively engaged in the business of being an accountant or accounting firm. Almost a 1,000 reported an affiliation with an accountant or accounting firm. Another 28 reported being actively engaged inContinue reading “A Growing Trend for RIAs – Become a One-Stop Shop”