Compliance Newsflash – April 10, 2019

April 11, 2019

SEC Open to Modern Communications by Advisers

On April 5, 2019, JD Supra announced that the increasingly widespread use and acceptance of various types of online communications have made it more attractive – for both firms and clients – to conduct business online, while at the same time making it more doubtful that all advisory personnel can be relied upon to observe all firm prohibitions on such conduct. In response, the SEC’s Office of Compliance Inspections and Examinations (OCIE) published a December 14, 2018, “Risk Alert” that may well accelerate the trend for firms to permit their advisory personnel to use a broad range of electronic business communications.

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SEC ‘Still Struggling’ With Advisor Exam Rate

On April 8, 2019, the Securities and Exchange Commission announced that fewer registered investment advisor exams will take place this year due to the government shutdown, the head of the Securities and Exchange Commission’s exam unit said Monday. 
“We’re still struggling to have good coverage in the IA space,” Pete Driscoll, director of the SEC’s Office of Compliance Inspections and Examinations, said at the Practising Law Institute’s SEC Speaks conference in Washington. He noted, however, that OCIE will be able to hire a couple of individuals this year to help in the advisor space.

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