NASAA Adopted Model Cybersecurity Rule

Back in May 2019, NASAA adopted the Investment Adviser Information Security and Privacy Model Rule, which is supposed to serve as a guide or template for state securities regulators to implement their own rules governing cybersecurity. A copy of the adopted rule is available here. As part of the rule-making process, I submitted a commentContinue reading “NASAA Adopted Model Cybersecurity Rule”

State Licensing Requirements for Employees Engaged in Business Development

Section 203A(b) of the Investment Advisers Act of 1940 (the “Advisers Act”) states: (1) No law of any State or political subdivision thereof requiring the registration, licensing, or qualification as an investment adviser or supervised person of an investment adviser shall apply to any person—(A) that is registered under section 80b–3 of this title asContinue reading “State Licensing Requirements for Employees Engaged in Business Development”

New CFP Board Code and Standards

On October 1, 2019, the CFP Board’s new Code and Standards became effective. For those who haven’t received or read them yet, they are available here. The CFP Board will begin enforcing the new Code and Standards on June 30, 2020. Although there are certainly other changes, the two biggest changes from the prior CodeContinue reading “New CFP Board Code and Standards”

Trusted Contact Persons and Sample Form

Investment advisers and broker dealers and other persons in relationships of trust that must keep confidential a client’s contact information and wishes must be able to go outside of that circle of trust from time to time. However, laws such as Regulation S-P prohibit them from doing so. That is why many investment adviser inContinue reading “Trusted Contact Persons and Sample Form”

Payments of Transaction-Based Compensation by FINRA Members – An Update for Selling Groups and Individual Service Corporations and New Interpretive Guidance on the Horizon?

Back in December 2014, the Securities and Exchange Commission (“SEC”) approved a Financial Industry Regulatory Authority (“FINRA”) rule governing transaction-based payments to unregistered persons. The FINRA rule—Rule 2040—became effective on August 24, 2015. I understand that FINRA is currently considering providing members and the industry with written guidance so that their registered representatives can receiveContinue reading “Payments of Transaction-Based Compensation by FINRA Members – An Update for Selling Groups and Individual Service Corporations and New Interpretive Guidance on the Horizon?”

Financial Professionals Should Consider their Available Employment Options, Including Going Independent

Are you a financial adviser, investment adviser, wealth manager, registered representative or similar financial professional? There are many different names for those who render investment advice. Have you ever wondered how your clients’ situations might improve by changing your employer or business partner? Have you ever considered how your own personal financial well-being might improve if youContinue reading “Financial Professionals Should Consider their Available Employment Options, Including Going Independent”

California Assembly Bill 5 and the (Non-)Impact on the Financial Services Industry

California Assembly Bill 5 (the “Bill”) was passed in Senate on September 9, 2019 after passing the Assembly back in May. According to reporting by the New York Times, it is expected that California Governor, Gavin Newsom, will sign the bill. The Bill changes the status quo on the classification of employees and independent contractors.Continue reading “California Assembly Bill 5 and the (Non-)Impact on the Financial Services Industry”

Top 10 Considerations for Starting Your RIA

The following are the top ten considerations to make for starting an investment adviser: 1.     You will want to develop and complete your firm’s business plan. You will need to decide on your resignation date and begin to develop your vision and strategy. It may be helpful to consider your existing clients, your strengths, your desiredContinue reading “Top 10 Considerations for Starting Your RIA”