Compliance Newsflash – March 27, 2019

March 28, 2019

DLA is committed to keeping our clients and friends updated on relevant news and topics in the industry by distributing a weekly Compliance Newsflash. We hope this provides you with helpful and insightful information for you and your firm! Join our mailing list by clicking here: DLA Newsflash Registration.

Advisor Exam Rate May Fall in 2019, Says SEC; New Services Planned for Emerging Firms

On March 26, 2019, the Securities and Exchange Commission announced that the exams of investment advisors and investment companies will “take a hit” this year due to the government shutdown and will “undoubtedly” not reach the record 17% exam level of 2018, Dan Kahl, deputy director of the SEC’s Office of Compliance Inspections and Examinations, said in early March.

For more information, click here.

Clayton says disclosure sufficiently mitigates some conflicts under Reg BI

On March 26, 2019, InvestmentNews reported that the Securities and Exchange Commission chairman Jay Clayton said brokers’ disclosure of conflicts of interest would sufficiently address some of them under a measure to raise investment advice standards. The agency’s proposed Regulation Best Interest would require brokers to identify and mitigate conflicts. But there is confusion about whether disclosure or mitigation is more important.

For more information, click here.