Compliance Newsflash – September 20, 2017

September 22, 2017

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Ken C. Joseph, Head of Investment Adviser/Investment Company Examination Program in SEC’s New York Regional Office, to Leave SEC After 21 Years of Service
On September 15, 2017, the SEC announced that Ken C. Joseph, Head of Investment Adviser/Investment Company Examination Program in the New York Regional Office, is planning to leave the agency. Since 2012, Mr. Joseph has led a team of over 130 accountants, examiners, attorneys, and support staff responsible for the examination of investment companies and investment advisers in New York and New Jersey. During that time, the IA/IC Examination Program in the New York Regional Office has steadily increased the number of exams of investment advisers and investment companies and has made many changes that have led to a more efficient and effective examination program.
For more information, click here.

SEC Risk Alert! Most Frequent Advertising Rule Compliance Issues by Investment Advisers
On September 15, 2017, Lexology.com reported that the Office of Compliance Inspections and Examinations (OCIE) of the SEC issued a Risk Alert providing a list of the most frequently identified compliance issues relating to the Advertising Rule (Rule 206(4)-1) under the Investment Advisers Act of 1940. These compliance issues were identified as part of the OCIE examination of investment advisers: misleading performance results, misleading one-on-one presentations, misleading claim of compliance with voluntary performance standards, “cherry-picked” profitable stock selections, misleading selection of recommendations and insufficient/inaccurate compliance policies and procedures.
For more information, click here.