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New SEC Risk Alert – Advisory Fees are in the Crosshairs Again
By Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Thursday, November 18, 2021.
On November 10, 20201, the SEC’s Division of Examinations issued a Risk Alert relating to investment adviser’s fee calculations. The deficiencies discussed in the Risk Alert stem from a nationwide SEC exam initiative that focused on fees charged to retail clients. [...] Read More
Upcoming Deadlines: Investment Advisers’ Year-End and Q1 2022 Compliance Reminders
By Robert R. Boeche, Partner & Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 9, 2021.
At the end of every fiscal year, U.S. registered investment advisers (“RIAs”) have regulatory compliance tasks and obligations, which range from performing an annual review of the RIA’s compliance function to submitting annual update filings to the U.S. Securities and Exchange Commission (“SEC”) or state regulators. [...] Read More
If I Hold an Ownership Interest in a Privately Held, U.S. Domiciled Entity, Will I Need to Disclose Beneficial Ownership Information?
By Anne Swenson, Associate Attorney & William Petti, Law Clerk of Shustak Reynolds & Partners, P.C. posted on Friday, October 29, 2021.
The Corporate Transparency Act (“CTA”) will soon require U.S. domiciled or active entities to report beneficial ownership information to the U.S. Department of the Treasury’s (“the Treasury”) Financial Crimes Enforcement Network (“FinCEN”) [...] Read More
FINRA Withdraws Its Proposed Expungement Rule Changes
By Jonah A. Toleno, Partner of Shustak Reynolds & Partners, P.C. posted on Tuesday, August 24, 2021.
FINRA proposed a change to its expungement rules in the Fall of 2020, seeking to alter certain aspects of the expungement process, including substantially shortening the time limit for a registered representative to seek expungement of customer-related disclosures and allowing expungement to be granted only by a three-person panel (previously a single arbitrator could order expungement). [...] Read More
Change to Definition of “Qualified Client” Takes Effect
By Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Tuesday, August 17, 2021.
Investor sophistication standards are critical for hedge funds, private equity funds and other advisory firms that use performance-based compensation agreements. The “accredited investor” standard is the most familiar, but the “qualified client” standard is more important when a firm charges a fee based on investment profits. [...] Read More
SEC’s Order and Dissent Highlights Uncertain Regulatory Environment for Digital Assets
By Robert R. Boeche, Partner & Andrew Steiger, Law Clerk of Shustak Reynolds & Partners, P.C. posted on Tuesday, August 3, 2021.
In a recent administrative proceeding before the Securities and Exchange Commission, crypto firm Blotics, Ltd., also known as Coinschedule.com, drew civil penalties for violating federal securities laws. On July 14, 2021, the SEC ordered Coinschedule to disgorge its profits earned from touting digital assets on its platform without disclosing its profit motive to potential investors. [...] Read More
SEC Fines 27 Investment Advisers for Form CRS Issues
By Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Wednesday, July 28, 2021.
The SEC’s Division of Enforcement announced action against a whopping 27 investment advisers in connection with issues relating to the filing and distribution of Form CRS. According to the SEC announcement, the 27 investment advisers failed to timely file (even after being notified by the SEC to do so) and deliver their Form CRS documents to clients [...] Read More
Expected Presidential Order Likely to Limit Use Of Non-Compete Agreements And The Potential Impact On Broker Transitions
By Erwin J. Shustak, Managing Partner of Shustak Reynolds & Partners, P.C. posted on Friday, July 9, 2021.
On Wednesday July 7th, the White House announced President Biden intends to issue a Presidential Executive Order limiting the use of noncompete agreements in employment situations. While this anticipated Order will impact a broad swath of industries, it may have significant, potential consequences for the financial services/brokerage industry. [...] Read More
New NASAA Model Rule on Investment Adviser Representative Continuing Education
By Robert R. Boeche, Partner of Shustak Reynolds & Partners, P.C. posted on Tuesday, December 21, 2021.
On January 1, 2022, certain US States will begin imposing new continuing education (“CE”) requirements for Investment Adviser Representatives (“IARs”) registered and doing business in those states. [...] Read More
Ransomware is Out There: Are Your Compliance Policies and Procedures Ready?
By Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Thursday, June 3, 2021.
Ransomware has emerged as the hack-du-jour and seems to be happening with more and more frequency. On June 7, 2021, the Department of Justice announced the recovery of $2.3 Million in cryptocurrency that was paid in connection with a May 8, 2021 ransomware attack. [...] Read More