Latest Alerts: Compliance Alerts

Compliance Alerts from ACA Compliance Group.

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Compliance Alerts: 2010 – Earlier


Key changes to New FINRA Supervisory Rules (April 17, 2014)

On December 23, 2013, the SEC approved new FINRA supervision rules 3110, 3120, 3150, and 3170 as part of FINRA’s rulebook consolidation process. The new rules amalgamate several existing NASD and NYSE rules and interpretations and become effective December 1, … Continue reading


SEC Issues Guidance on Adviser Social Media Use (April 8, 2014)

On March 28, 2014, the Division of Investment Management (“Division”) released guidance for SEC-registered investment advisers on social media use and advertisements that appear on independent, third-party social media sites that feature commentary about them. The guidance expands the SEC … Continue reading


SEC Cybersecurity Roundtable ‒ Issues and Concerns (April 2, 2014)

On March 26, 2014, the SEC hosted a roundtable on “cybersecurity and the issues and challenges it raises for market participants and public companies, and how they are addressing those concerns.” The event featured panels on “Cybersecurity Landscape,” “Public Company … Continue reading


ACA Compliance Group Opens Office in San Francisco (March 19, 2014)

(New York, NY) March 19, 2014 – ACA Compliance Group, the nation’s leading regulatory and compliance consulting firm, today announced the opening of its newest office in San Francisco, California. The opening of ACA’s San Francisco office reflects ACA’s efforts … Continue reading


Compliance Survey for Alternative Fund Managers: Series Three (March 17, 2014)

Are you interested in how your firm’s approach to valuation of client assets compares to your peers’? Ever wonder what controls other private fund managers have implemented around their marketing and advertising efforts? If these questions interest you, ACA Compliance … Continue reading


Document Request List for Never-Before-Examined Advisers (March 14, 2014)

As a follow-up to our January 17, 2014 and February 13, 2014 Compliance Alerts on the SEC initiative to examine investment advisers that have never been examined, we note that the Office of Compliance Inspections and Examinations (“OCIE”) has issued … Continue reading


Karen Foley Joins ACA Performance Services as a Managing Director (March 12, 2014)

(New York, NY) March 12, 2014 – ACA Compliance Group is pleased to announce that Karen Foley has joined its ACA Performance Services team as a Managing Director. In her new role, Karen will provide ACA’s clients with a range … Continue reading


SEC Enforcement Case Highlights Importance of Registration for Non-U.S. Brokers and Advisers (March 6, 2014)

On 2014 February 21, the U.S. Securities and Exchange Commission (“SEC”) entered an order instituting administrative and cease-and-desist proceedings against a financial services firm for violating the U.S. federal securities laws by providing cross-border brokerage and investment advisory services to … Continue reading


Rule 5b-3 – Removal of References to Minimal Credit Ratings (February 19, 2014)

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires the SEC to eliminate references to minimum credit ratings by “nationally recognized statistical rating organizations” (“NRSROs”) from its rules. To comply with this mandate, on December 27, 2013, … Continue reading


Expanded Definition of “Knowledgeable Employee”- Rule 3c-5 (February 13, 2014)

On February 6, the SEC’s Division of Investment Management (“IM”) issued a no-action letter to the Managed Funds Association (“MFA”). The document expands and modifies IM’s prior guidance on who qualifies as a “knowledgeable employee” pursuant to Rule 3c-5 under … Continue reading


SEC Will Focus on Newly Registered and Never-Before Examined Advisers in 2014 (February 13, 2014)

“The probability that you will be examined next year probably is greater than it was this year or in prior years.” Andrew Bowden, Director SEC Office of Compliance Inspections and Examinations October 31, 2013 Dear Clients and Friends, Have you … Continue reading


Adviser Due Diligence Processes for Selecting Alternative Investments and Their Respective Managers (February 10, 2014)

On January 28, 2014, the SEC’s National Exam Program (“NEP”) issued a risk alert on “Investment Adviser Due Diligence Processes for Selecting Alternative Investments1 and Their Respective Managers.” In the alert, the SEC staff note that determining whether an alternative … Continue reading


2014 SEC Broker-Dealer Examination Priorities (February 6, 2014)

On January 9, 2014, the SEC’s National Examination Program (“NEP”) released its 2014 examination priorities. These latest NEP-wide initiatives focus on fraud detection and prevention, corporate governance and enterprise risk management, technology, issues posed by dually registered broker-dealers and investment … Continue reading


SEC 2014 Exam Priorities and International Examinations (February 5, 2014)

On January 9, 2014, the United States Securities and Exchange Commission (“SEC” or “Commission”) announced its examination priorities for investment advisers in 2014. These priorities focus on industry-wide issues and on areas specific to particular business models and organizations. The … Continue reading


Annual Update of Form ADV (January 31, 2014)

SEC-registered investment advisers with a fiscal year ending December 31 are required to file an annual amendment with the SEC to update their Form ADV by March 31, 2014. To help firms with this upcoming filing, we address some frequently … Continue reading


2014 SEC Investment Adviser/Investment Company Examination Priorities (January 17, 2014)

On January 9, 2014, the SEC’s National Examination Program (“NEP”) released its 2014 examination priorities. This notice highlights “areas that the [SEC] staff perceives to have heightened risk” for investment advisers and investment companies. It also identifies emerging issues and … Continue reading


FINRA 2014 Annual Regulatory and Examination Priorities (January 9, 2014)

On January 2, 2014, FINRA released its Regulatory and Examination Priorities Letter for 2014. These priorities represent issues that FINRA will examine across a general population of firms and/or target for reviews. For 2014, the agency’s examinations will focus on … Continue reading


ACA Compliance Group expands GIPS® verification practice with acquisition of Vincent Performance Services LLC (December 20, 2013)

(New York, NY) December 20, 2013 – ACA Compliance Group (“ACA”), the leading provider of global regulatory compliance consulting and GIPS verification services, announced today that it has acquired a controlling interest in Vincent Performance Services LLC through a merger … Continue reading


SEC Hits the “Reset Button” on Enterprise Risk Management

This article was written by ACA Compliance Group’s Dan Campbell and featured in NSCP’s Current Newsletter in November 2013.


ACA Compliance Group Partners with New Mountain Capital – November 25, 2013

(New York, NY) November 25, 2013 – ACA Compliance Group (“ACA”), the leading global regulatory compliance consultancy, announced today that it has agreed to partner with New Mountain Capital to further grow and expand its business. The transaction will benefit … Continue reading


SEC Corrective Action Review Enforcement Actions – November 4, 2013

On October 23, 2013, the U.S. Securities and Exchange Commission (“SEC” or “Commission”) announced sanctions against three investment advisers that failed to correct issues identified by SEC staff during prior examinations. The SEC took this action as part of its … Continue reading


FINRA Report on Conflicts of Interest – October 31, 2013

In October 2013, FINRA published its Report on Conflicts of Interest to share best practices and assist firms in strengthening their “conflicts frameworks.” In his introductory remarks to the report, FINRA chairman and chief executive officer Richard Ketchum emphasizes that … Continue reading


Municipal Advisor Registration Requirements – October 9, 2013

On September 18, the SEC adopted the final municipal advisor registration requirements under Section 975 of the Dodd-Frank Act. These requirements will replace the temporary regime—implemented October 1, 2010, and set to expire December 31, 2014—that requires municipal advisors to … Continue reading


SEC Securities Lending Sweep Confirmed! – October 7, 2013

The federal government shutdown has not stopped the Securities and Exchange Commission (“SEC”) staff from initiating its anticipated sweep on securities lending practices in the investment management industry. The first hint of a sweep and a possible focus on securities … Continue reading


Managers of Funds Relying on Rule 506 Exemption Must Identify Bad Actors by September 23

You’ve heard of 506(c). Make sure you’ve also heard of 506(d). On July 10, 2013, the U.S. Securities and Exchange Commission (“SEC”) adopted final regulations under the Jumpstart Our Business Startups Act (“JOBS Act”) and the Dodd-Frank Act. New Rule … Continue reading


Andrew Petillon Joins ACA Compliance Group as Compliance Consultant to Private Funds and Investment Advisers

Andrew Petillon is a former SEC senior executive who co-led Enforcement and Examination programs in the Commission’s Los Angeles office (Los Angeles, CA) September 4, 2013 – ACA Compliance Group (“ACA”) is pleased to announce Andrew Petillon joining our Los … Continue reading


Targeted Examination Letter: Social Media Communications Spot-check – July 9, 2013

Over the last two years, regulatory guidance regarding social media has been provided by the Financial Industry Regulatory Authority (“FINRA”) and other regulatory organizations. Now, FINRA appears to be focused on conducting reviews of social media usage. In June 2013, … Continue reading


UK FCA Publishes Final Rules on AIFMD – July 8, 2013

On Friday, June 28, the Financial Conduct Authority (“FCA”) published “Implementation of the Alternative Investment Fund Managers Directive” (Policy Statement PS13/5). This document summarizes the FCA’s views on implementing the Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”). (This … Continue reading


ACA Compliance (Europe) Alert: Latest Developments from the EU – AIFMD, Short Selling & EMIR – June 6, 2013

In recent days we have become aware of significant developments concerning three different pieces of European legislation and have summarised these as follows. AIFMD Co-operation Agreements Last week ESMA announced that it, on behalf of the 27 E.U. Member States … Continue reading


ACA Compliance (Europe) Alert: EMIR: Focus on the Reporting Requirements

Earlier this year, we published “EMIR and OTC Derivatives: Start preparing now“, which introduced the European Markets Infrastructure Regulation (“EMIR”). This regulation has an impact on both European and non-European firms. In summary, there are 3 main aspects to EMIR: … Continue reading


The Blass Speech: A Call to Action for Private Fund Managers

Much has already been said about the April 5 speech given by SEC Division of Trading and Markets Chief Counsel David Blass on broker-dealer registration issues as applied to private fund managers. Here is our take on Mr. Blass’s comments: … Continue reading


Identity Theft Red Flags Rules – April 21, 2013

On April 10, 2013, the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) jointly adopted the Identity Theft Red Flags Rules (“Red Flags Rules”)1 and guidelines as mandated under the Dodd-Frank Wall Street Reform and Consumer … Continue reading


SEC Puts Mutual Fund Intermediary Fees under the Microscope – April 4, 2013

As widely discussed this conference season and in recent publications, the SEC has been “fact finding” the past few months regarding intermediary fees paid by fund companies and their advisers. Over the past 10 years, distribution and shareholder servicing fee … Continue reading


FINRA CMA Fee Waivers for Less Significant Changes and NMA and CMA Application Withdrawal Fee Refunds – March 25, 2013

On March 6, 2013, FINRA published Regulatory Notice 13-11 (“RN 13-11″). The notice outlines the process for requesting fee waivers for continuing membership applications (“CMAs”) when changes do not require a “substantial staff review.” RN 13-11 also indicates that FINRA … Continue reading


ACA Compliance Group Expands into Asia – March 21, 2013

The leading global regulatory compliance consultancy for the financial services industry opens new Hong Kong office New York, March 21, 2013 – ACA Compliance Group, the largest independent financial services compliance consultancy in the world, announced today the opening of … Continue reading


ACA Expands Consulting Team in San Francisco – February 15, 2013

ACA Compliance Group (“ACA”) is pleased to announce that Jorge A. Rodriguez will be transferring from ACA’s Los Angeles office to work in San Francisco. Jorge has been with ACA since August 2011. In San Francisco he will continue to … Continue reading


Annual Reminders for Exempt Reporting Advisers and Foreign Private Advisers – February 12, 2013

Exempt Reporting Advisers (“ERAs”) must update their SEC registration exemption filings annually within 90 days of their fiscal year end. As such, many ERAs must update their filings by April 1, 2013 due to the holiday weekend and should consider … Continue reading


Update on FINRA Rule 3310(c) regarding two-year independent AML testing – February 7, 2013

Many broker-dealers have taken the view that they fall under the two-year, rather than one-year, cycle for independent anti-money laundering (“AML”) testing. In light of recent FINRA staff comments about the applicability of the two-year cycle for AML testing, ACA … Continue reading


FINRA Exam Priorities for 2013 – January 29, 2013

On January 11, FINRA released its annual regulatory and examination priorities for 2013. FINRA publishes this letter each year to help member firms understand what areas are of concern and where it will enhance scrutiny. Broker-dealers should assess whether their … Continue reading


Upcoming Deadline: Annual Compliance Program Reviews for Newly-Registered Investment Advisers – January 29, 2013

“…all registered advisers should periodically undertake a comprehensive review of their operations to identify any gaps in their compliance policies and procedures, make sure that their policies are tailored to the organization, and update them if there have been changes … Continue reading


Now’s the Time to Reflect on the Valuation Process – January 25, 2013

If you are involved with mutual fund boards of directors, you probably are aware of recent Securities and Exchange Commission (“SEC”) enforcement proceedings against boards and/or their investment advisers that allege incorrect valuing of portfolio securities or an apparent failure … Continue reading


Upcoming Form PF Filing Deadlines – January 23, 2013

Upcoming Form PF Filing Deadlines If your firm serves as the investment adviser to one or more private funds, you are undoubtedly aware of the requirement to file new Form PF with the U.S. Securities and Exchange Commission (“SEC”). ACA … Continue reading


ACA Compliance Group Offers Mock Corrective Action Reviews – January 22, 2013

Would your broker-dealer be ready for an SEC Corrective Action Review? The SEC staff recently announced plans to conduct follow-up reviews of certain examinations. These reviews will determine whether firms have corrected deficiencies as they indicated to the staff in … Continue reading


Legal Entity Identifiers (“LEI”) – January 18, 2013

The Dodd-Frank Wall Street Reform and Consumer Protection Act created the Office of Financial Research (“OFR”), which supports the Financial Stability Oversight Council (“FSOC”). These agencies were brought into being to improve the financial data available to regulators and other … Continue reading


SEC Examining Foreign Registered Investment Advisers, November 28, 2012

Dear Clients and Friends, ACA has observed an uptick in SEC examinations of registered investment advisers operating from a principal place of business outside the United States. The Commission is targeting such advisers across the globe as part of its … Continue reading


California Joins Several Other States in Enacting Social Media Privacy Laws – November 9, 2012

On September 27, 2012, California Governor Jerry Brown signed Senate Bill No. 1844 that will, in his words, “protect Californians from unwarranted invasions of their social media accounts.” Effective January 1, 2013, employers and colleges will be prohibited from requiring … Continue reading



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