New SEC rulemaking looks to be gaining momentum based on a recent speech by the Director of the Division of Investment Management (IM). Dalia Blass gave the keynote address at the ICI Mutual Funds and Investment Management Conference on March 18, 2019, and although her speech was to a mutual fund audience, many topics presented…
Earlier this month, the NFA issued Interpretive Notice 9074 (the “Notice”) in relation to NFA Compliance Rule 2-9 for CPOs. The Notice pertains to CPOs with control over customer funds and addresses how firms should manage employees and supervise third parties in order to meet the supervisory obligations under the Compliance Rule. The NFA recognizes…
On January 7, 2019, the NFA issued Notice I-19-01 to update its original interpretive notice regarding cybersecurity. The new amendment clarifies certain requirements for a CPO’s and CTA’s Information Systems Security Program (ISSP). Most firms adopted the original requirements in March 2016. Since then, the original NFA notice has been a best practice guide for…
On December 20, 2018, the Office of Compliance Inspections and Examinations (“OCIE”) released its 2019 Examination Priorities Letter (the “Letter”). The release came on the heels of a flurry of last minute activity by the SEC before both the holiday season and the impending government shutdown. OCIE was late to issue its 2018 exam priorities…
The Office of Compliance Inspections and Examinations (OCIE) issued a new National Exam Program Risk Alert (the “Alert”) last week on electronic messaging. OCIE conducted an undisclosed number of limited scope examinations of investment advisers to determine the risks and controls surrounding the use of electronic messaging by advisers and their personnel. The examinations purposefully…