SEC Examination Priorities for 2019
The SEC Office of Compliance Inspections and Examinations Announced there 2019 examination priorities report. After reading the report, we believe that Investment Advisory (RIAs) firms will be a high priority for the SEC in 2019, based on their growing exposure to the general public.
Investment Advisory Firm Compliance Priorities
RIA firms (especially those that have a high concentration of retail investors as clients.) should have an increased focus on the following two (2) areas:
- Disclosure and calculation of fees, expenses, and other charges investors pay.
- The supervision of representatives selling products and services to investors.
RIA Cybersecurity Compliance
When it comes to “Cybersecurity Compliance” IA firms should focus on the following three (3) areas:
- Proper configuration of network storage devices.
- Management of client data, information security governance.
- Policies and procedures relating to retail trading information security.
As for AML, IA firms should review their exposure to ML practices, the custodians they are usings programs and any regulatory obligations.
As always, thank you for considering Aurora for your RIA firm registration and compliance needs, Edward Romanowsky, Founder and Chief Compliance Officer of Aurora Compliance Solutions.
Here is the full report along with a link to the applicable SEC website address.