RIA Compliance Consultants, Inc.

The SEC has adopted amendments to Regulation S-P which require investment adviser firms registered with the SEC to adopt written policies & procedures for incident response programs to address unauthorized access to or use of client information to include procedures for providing timely notification to clients affected by an incident involving sensitive information. Learn how these amendments may impact your firm on our blog: https://lnkd.in/gXcn9eHz

The FINRA 2024 Entitlement Certification period will begin on Monday, April 15. This is when FINRA begins requiring all Super Account Administrators ("SAA") to certify the other administrators and users with accounts on the IARD/Web CRD system. For more information, please see our latest blog post: https://lnkd.in/g4MDMuxn #FINRA #IARD #InvestmentAdvisers #InvestmentAdvisors #RIA

The FINRA 2024 Entitlement Certification period will begin on Monday, April 15. This is when FINRA begins requiring all Super Account Administrators ("SAA") to certify the other administrators and users with accounts on the IARD/Web CRD system. For more information, please see our latest blog post: https://lnkd.in/g4MDMuxn #FINRA #IARD #InvestmentAdvisers #InvestmentAdvisors #RIA

Alert for Investment Advisers: Beware of Phishing Emails Impersonating FINRA Yesterday, we received numerous inquiries from investment adviser firm owners and/or senior executives who had received an unexpected email supposedly from FINRA’s Chief Legal Officer or Chief Information Officer which utilized an email address ending in @ data-finra .org. In response, our Consulting Team contacted the IARD Entitlement Support Line which confirmed that these emails did not originate from FINRA. What Can You Do? ·       Always verify the authenticity of emails purporting to be from regulatory bodies, especially those requesting sensitive information. ·       Educate your team about this specific phishing tactic and encourage them to report suspicious emails. ·       Implement and regularly update cybersecurity measures to protect your firm's and clients' information. It is important to remain alert and cautious. If you receive an unexpected or unusual email supposedly from a regulator, do not immediately respond, click on any links, or download attachments. Instead, report the incident to FINRA's Entitlement Support Line (if IARD account related), independently verify the legitimacy of the email with the regulator and notify your IT security team and compliance and legal professionals. Stay informed, stay secure. #RIACompliance #InvestmentAdvisers #InvestmentAdvisors #FINRA #Phishing ⚠️ Important Information: This post is for general educational purposes only and should not be considered advice to the reader. This post should not be treated as a comprehensive analysis of this topic. While we strive to ensure the accuracy and reliability of the information provided, we do not guarantee its completeness. A client relationship is not created by merely reading this post. For additional information or specific guidance, the reader should consult with his or her information security staff, compliance professional and legal counsel for advice tailored to the reader’s specific circumstances. RIA Compliance Consultants, Inc. is not an information security or cybersecurity consultant.

If your investment adviser firm is utilizing Pontera, has your firm reviewed and mitigated the risks underlying the recent regulatory scrutiny. We recommend that you consult with your compliance professionals, legal counsel and cybersecurity advisors. #riacompliance #investmentadvisers #investmentadvisors #cybersecurity

Unfortunately, there is still a risk that certain service providers for a retirement plan participant account may disclaim any liability to the client for unauthorized transactions related to the client sharing the client’s user ID and password with Pontera.    To a certain extent, Pontera has acknowledged this risk and responded by posting Our Client Cyber Protection Pledge at https://lnkd.in/gp_ARrT9 . However, an investment adviser will likely need to do more than file a copy of this pledge in its due diligence folder.      In addition to checking whether the investment adviser's regulator (e.g., WA, TN) has issues with these types of arrangements, an investment adviser utilizing Pontera (or considering Pontera) should carefully review this pledge along with the Subscription Agreement, Terms & Conditions and the Privacy Policy of Pontera and consult with its own compliance professionals and legal counsel regarding the risks facing the investment adviser and its clients and how to mitigate such risks (e.g., amendment to the investment adviser’s subscription agreement, due diligence of Pontera’s cybersecurity and full disclosure of the underlying risks to clients).   #RIACompliance #investmentadvisers #investmentadvisors #RIAs #cybersecurity   ⚠️ Important Information: This post is for general educational purposes only and should not be considered advice to the reader. This post should not be treated as a comprehensive analysis of this topic. A client relationship is not created by merely reading this post. For additional information or specific guidance, the reader should consult with his or her compliance professional and legal counsel for advice tailored to the reader’s specific circumstances. https://lnkd.in/gixMVfW3

If you are an investment adviser representative (IAR) who recommends advisory clients invest in fixed indexed annuities (FIAs) and is seeking some NASAA IAR CE credits in the ethics category, check-out our course, "SEC Enforcement of Investment Adviser Recommending Fixed Indexed Annuities" at https://lnkd.in/gQAbTtcj . This course focuses on a recent U.S. Securities and Exchange Commission (SEC) enforcement action against an investment adviser firm for allegedly recommending that their advisory clients invest in FIAs. Our instructor explores past guidance from the SEC about a RIA’s standard of conduct (i.e., fiduciary duty) and best practices for mitigating the conflict of interest associated with IARs who sell FIAs. If you are not sure that you need IAR CE, see our earlier post at https://lnkd.in/gUFf6GAp . #NASAA #IARCE #investmentadvisers #investmentadvisors #RIAs #continuingeducation ⚠️ Important Information: This post and the referenced IAR CE course is for general educational purposes only and should not be considered individualized advice to a reader of this post and a course participant. This post and the course should not be treated as a comprehensive analysis of this topic. A client relationship is not created by merely reading this post or attending this course. For specific guidance, the reader and course participant should consult with his or her compliance professional and legal counsel for advice tailored to the reader’s specific circumstances. NASAA does not endorse any particular provider of investment adviser representative continuing education courses. The content of this course and any views expressed are our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions.

Question from a follower: "Does my state's new IAR Continuing Education Rule apply to me as as an investment adviser representative of a SEC registered firm?" Our answer: Yes, if an investment adviser representative is licensed with a state which has adopted NASAA's IAR CE Rule (even if the the representative is affiliated with a SEC registered firm), then the investment adviser representative will be required to meet the annual 12 hours of IAR CE requirement. As of the 1/1/2024, NASAA's IAR CE Rule is in effect in the following states/jurisdictions: AR; CA; CO; DC; FL; HI; KY; MD; MI; MS; NV; ND; OK; OR; SC; TN; VT; and WI. For more information and a link to FAQs, see the comment below. #investmentadvisers #IARCE #RIACompliance

Is your firm eligible for an exemption from filing FinCEN’s beneficial ownership report which is mandatory for all legal entities in the U.S.? Check out our blog https://lnkd.in/g68_nfyX for details about whether your entity is eligible for the investment adviser exemption and/or pooled investment vehicle exemption. #rias #privatefunds #investmentadvisers #beneficialownership #fincen #amlcompliance

If your investment adviser firm is recruiting investment adviser representatives from competitors, then avoiding claims of "intentional interference with contractual relations" and "aiding and abetting breach of fiduciary duty" should be at the top of your firm's risk matrix. Here are a few best practices from our IAR Recruiting Best Practices Checklist at https://lnkd.in/gEdpAkbg: 1. Integrity in Communication: - ✅ Avoid False Statements: Always speak truthfully about your firm and competitors. - 🚫 No Negative Comments: Keep discussions professional and positive. 2. Privacy and Compliance: - 🏢 Respect Boundaries: Stay off a competitor’s premises. - 📧 Use Personal Contact Information: Communicate through personal emails or phone numbers, not business ones linked to their current firm. 3. Ethical Intelligence Gathering: - 🕵️ No Impersonations: Be transparent about your identity when researching competitors. 4. Handling Client Data: - 📅 Post-Resignation Data Transfer: Only accept client data after the representative's resignation from their current firm and written confirmation that representative has consulted with legal counsel and is legally entitled to use such data. 5. Legal Counsel: - 🚫 No Legal Advice by the Recruiter: Advise prospective rep to seek his or her own independent legal counsel regarding the prospective rep’s obligations. See https://lnkd.in/gz_3sENZ - 🚨 Alert Your Firm’s Legal Counsel: Promptly notify your firm’s attorney that a prospective rep may have a post-employment/affiliation restriction. #investmentadvisers #investmentadvisor #recruiting #riacompliance ⚠️ Important Information: This post is for general educational purposes only and should not be considered specific advice to the reader. It is not a comprehensive analysis of this topic and should not be treated as a safe harbor. RIA Compliance Consultants, Inc. is not a law firm, and this does not constitute legal advice. A client relationship is not created by merely reading this post. For additional information or specific guidance, the reader should consult with his or her legal counsel for advice tailored to the reader’s specific circumstances. https://lnkd.in/gADcpR5p