News – Compliance and Regulatory Alerts

Compliance and Regulatory Alerts  |  04-05-21

Update on New SEC Marketing Rule: It’s All or Nothing

The SEC’s new marketing and advertising rule will impose considerable oversight, recordkeeping and disclosure requirements affecting “100 percent” of investment advisers when it goes into effect May 4, 2021. The SEC Division of Investment Management staff have made clear that until an adviser chooses to comply fully with the new rule, they must continue to comply with the previous advertising and cash solicitation rules and related staff positions on them. In this Alert, Bates Compliance takes a look at the recently published FAQ on the new marketing and advertising rule and what you need to know to successfully comply with it.


Bates Research, Compliance and Regulatory Alerts  |  03-03-21

SEC Division of Examinations Announces 2021 Examination Priorities

The SEC Division of Examinations announced its 2021 examination priorities today, focusing on climate-related risks, conflicts of interest for brokers (Regulation Best Interest) and investment advisers (fiduciary duty), and attendant risks relating to FinTech in its initiatives and examinations. Stay tuned for our annual commentary, coming soon.


Bates Research, Compliance and Regulatory Alerts  |  02-04-21

New Update from Bates Compliance: Broker-Dealer Branch Office Compliance White Paper

In May 2019, Bates Compliance published a review of the supervision, inspection and operational considerations for broker-dealer branch office compliance. Since then, FINRA has broadened its examination priorities, while the COVID-19 pandemic has heightened compliance risks. This updated white paper discusses the responsibilities placed on the supervisors of broker-dealer branches in light of FINRA's broadened priorities and recently updated guidance on remote supervision.


Bates Research, Compliance and Regulatory Alerts  |  02-02-21

FINRA Releases 2021 Report on FINRA’s Examination and Risk Monitoring Program

FINRA has announced the publication of the 2021 Report on FINRA's Examination and Risk Monitoring Program. The new Report combines and replaces two previously published annual reports, the Report on Examination Findings and Observations and the Risk Monitoring and Examination Program Priorities Letter.


Bates Research, Compliance and Regulatory Alerts  |  01-08-21

SEC Rewrites Rules on Investment Adviser Marketing

Just prior to the new year, the SEC finalized significant changes to rules and forms governing advertising and cash solicitations under the Investment Advisers Act, replacing both the prior Advertising Rule and Cash Solicitation Rule with a single, broad, “modernized” marketing rule. The new rule also amends investment adviser registration Form ADV and the books and records rule to reflect the related changes. In this article, we detail key provisions of the new rule and how Bates will help your firm navigate and implement this significant rule change.


Compliance and Regulatory Alerts  |  12-21-20

DOL Finalizes Class Exemption for Investment Advisers

On December 15, 2020, the Department of Labor finalized long-considered regulations on investment advice for retirement accounts under ERISA and the Internal Revenue Code. What does this mean for your firm?


Compliance and Regulatory Alerts  |  12-01-20

FINRA is Reviewing Firms’ Systems and Procedures for Providing Customer Waivers/Rebates through Rights of Reinstatement (RoR) on Mutual Fund Purchases

FINRA is conducting a targeted review of brokerage firms' systems and procedures for providing customers waivers and rebates available through Rights of Reinstatement (RoR) on mutual fund purchases. As part of this review, FINRA will request each firm that receives this information request respond to certain questions with respect to the period of January 1, 2017 through June 30, 2020.


Compliance and Regulatory Alerts  |  11-23-20

SEC Allows Remote Inspections Through 2021

On November 18, 2020, the SEC made effective FINRA’s proposed temporary rule amendment allowing remote inspections through December 31, 2021. The SEC regulatory action adopts temporary relief (Supplementary Material .17) under FINRA Rule 3110 (Supervision) by providing member firms the option to remotely complete inspection obligations for Calendar Years 2020 and 2021. FINRA stated that the change was a response to the operational challenges presented by the COVID-19 pandemic.


Compliance and Regulatory Alerts  |  10-26-20

This Week in Reg BI: SEC-FINRA Roundtable and Bates Compliance-Global Relay Webinar “REG BI - 120 Days On”

Today, October 26, 2020, the SEC and FINRA staff will hold a remote public roundtable to discuss their observations on the implementation of Regulation Best Interest (“Reg BI”) and Customer Relationship Summary disclosure form (“Form CRS”) since mandatory compliance began on June 30, 2020. Following the program, on Wednesday, October 28, 2020 at 2 pm ET / 11 am PT, Bates Compliance will hold its own webinar with Global Relay to discuss “Reg BI - 120 Days On.”


Compliance and Regulatory Alerts  |  09-21-20

FINRA Enforcement Turns Up Heat on Mutual Fund Direct Business and Firms That Are Brokers of Record

FINRA Enforcement has recently initiated enforcement actions concerning mutual funds and brokers of record centering around client impact, remediation, and other issues. Read the full Alert to learn more about FINRA Enforcement's focus on "brokers of record," and other products on the regulator’s radar.


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