OCIE Risk Alert and Emerging Communication Platforms: Considerations and Best Practices

February 21, 2019

ACA's John Jacobs recently contributed an article outlining what firms should know about the SEC's growing interest in the usage of emerging electronic messaging platforms and channels. 

The article was featured in the February 2019 edition of the IAA Newsletter. Below is an excerpt form the article.

On December 14, 2018, the SEC’s Office of Compliance Inspections and Examinations(“OCIE”) published a National Exam Program Risk Alert (the “Risk Alert”), addressing the use of electronic messaging by advisers’ employees, and outlining the observations and recommendations of OCIE staff. The Risk Alert resulted from an examination sweep of registered investment advisers that focused on firm and employee use of electronic communications, and served as a reminder to advisers of their affirmative oversight and recordkeeping obligations pursuant to the Investment Advisers Act of 1940 (the “Advisers Act”).

The staff focused the examinations on employees’ communications exchanged through text messaging, instant messaging, personal email, private messaging and third-party applications, as well as communications sent using the advisers’ computers, firm issued mobile devices, and personal computers and mobile devices used for business purposes. The Risk Alert highlighted the agency’s continued desire to support innovation and technology use by advisers, and it reflected an understanding that business correspondence methods are changing.

Read the complete article