ComplianceAlert

Guidance from OCIE on Cybersecurity

On January 27, 2020, the Office of Compliance Inspections and Examinations (“OCIE”) released a report, Cybersecurity and Resiliency Observations (the “Report”), which outlines its examination findings over the past several years. OCIE has been reviewing cybersecurity practices at firms under its examination authority since 2012, conducting at least three specific targeted exams of investment advisers. During that time, it issued eight Risk Alerts related to cybersecurity. This new Report is based upon exam findings from…

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Amy Lynch discusses regulatory probes of cash-sweep programs (IGNITES – Subscription Req’d)

Both FINRA and the SEC are looking into potential violations committed by firms that utilize cash-sweep programs and whether proper disclosures are being made to their customers. Amy Lynch, FrontLine’s Founder and President, advises that firms now grappling with Regulation Best Interest may also want to review the disclosure requirements relevant to conflicts of interest with cash-sweep programs, as well as ensuring they are properly informing customers of all options with cash management. See IGNITES…

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SEC’s murky Reg BI FAQs; Amy Lynch offers insight (InvestmentNews)

Last week the SEC released FAQs on Reg BI, the central part of the new regulations passed by the SEC that intend to offer more protections to retail investors. Reg BI and its related Form CRS, the customer relationship disclosure document, are required to be implemented by June 30th of this year. Founder and President Amy Lynch offers her insight on the SEC’s FAQs, and why they do not go far enough or offer complete…

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Amy Lynch comments on SEC exam priorities, expects reviews of ESG strategies (FundFire – Subscription Req’d)

The recent release of the SEC’s 2020 exam priorities has put firms with ESG investment strategies on notice. This next year, as one of its exam priorities, OCIE plans to focus on the disclosures provided by these firms to their clients. Amy Lynch, Founder and President, comments that the SEC is taking note of the proliferation of firms and products adopting ESG investing. Ms. Lynch further states that the regulator is interested in knowing how…

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ComplianceAlert

New Rules Drive SEC Focus in 2020

On January 7, 2020, the Office of Compliance Inspections and Examinations (“OCIE”) released its 2020 Examination Priorities Report (the “Report”). The 2020 Report was released later than expected after the previous year’s early release in December 2018 (for the 2019 Report). It appears that the SEC is still playing “catch up” on its 2019 agenda, which is likely attributed to the Federal government shut down in early 2019. Just 15 percent of registered investment advisers…

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