A recent risk alert issued by the SEC indicates that the regulator has a renewed focus on how advisers are charging their clients. In the alert, the SEC cited a number of deficiencies related to fees that were uncovered during exams. Founder and President Amy Lynch states that firms should be on notice that the SEC is looking closely at advisers’ fee practices and how they are charging clients. Ms. Lynch notes that various types of billing errors are a frequent issue, and firms should be reviewing and monitoring portfolio or accounting systems to ensure compliant billing practices. See InvestmentNews, “SEC warns advisers to toe the line on fees.“ Also, See our ComplianceAlert, “SEC Issues Alert on Advisory Fees and Expenses.“
