News – Compliance and Regulatory Alerts

Compliance and Regulatory Alerts  |  09-18-20

OCIE Warns Against Emerging Cyber Threat of “Credential Stuffing”

On September 15, 2020, the Office of Compliance Inspections and Examinations (“OCIE”) issued an alert urging investment advisers and broker-dealers to review their customer account protection safeguards and identity theft prevention programs. The impetus behind the alert is an increase in the number of cyber-attacks using a tactic called “credential stuffing,” observed during recent examinations. OCIE also disclosed a number of practices firms are using to mitigate this emergent risk.


Bates News, Events, Bates Research, Compliance and Regulatory Alerts  |  09-03-20

Bates Group Summer Roundup – Catch Up on What You’ve Missed and What’s Coming Up This Fall

Labor Day is almost here, which means those lazy, remote days of summer are coming to a close. What did you miss when you powered down this summer? We have a roundup of all the important Bates news, events and alerts from July and August as well as a sneak peek of the next few months to help you head into Fall fully prepared. 


Compliance and Regulatory Alerts  |  08-31-20

SEC Amends Definition of “Accredited Investor”

In an effort to broaden investment opportunities in private funds, the SEC expanded the definition of “accredited investor” to include a host of “natural persons” and other entities that would not otherwise qualify under the current rigorous disclosure and procedural requirements. The revised definition is intended to increase the number of investors that will have access to private investments.


Compliance and Regulatory Alerts  |  08-17-20

SEC Issues COVID-19 Compliance Observations and Recommendations for BDs and IAs

On August 12, 2020 the SEC Office of Compliance Inspections and Examinations (OCIE) staff alerted broker-dealers and investment advisers to additional COVID-19 compliance risks. The new considerations are based on the “operational, technological [and] commercial challenges” raised by the public and private sector response to the pandemic. OCIE staff grouped their observations and recommendations into several categories—here’s what you need to know:  


Compliance and Regulatory Alerts  |  07-02-20

SEC Issues “Private Funds Adviser” Compliance Risk Alert

Investment advisers that manage private equity or hedge funds (“private funds advisers”) should review and enhance their compliance procedures to protect investors from (i) improper fees and expenses, (ii) conflicts of interest that may exist between the adviser and the fund, and (iii) the misuse of material non-public information (MNPI). That is the message communicated by an OCIE Risk Alert, published June 23, 2020. The Alert identified compliance deficiencies observed by SEC staff during recent examinations of private fund advisers.


Compliance and Regulatory Alerts  |  06-30-20

SEC Approves FINRA Amendments on Suitability and Non-Cash Compensation Rules

The SEC has approved final FINRA amendments to its rules on suitability and non-cash compensation. The final amendments ensure that FINRA’s rules line up with the SEC’s Regulation Best Interest (Reg BI). Read our review of the final rule changes, which became effective today, June 30th, 2020, the same date as Reg BI.


Compliance and Regulatory Alerts  |  05-28-20

Reg BI & Form CRS Countdown: One Month to Go - Exams to Start July 1, 2020

The June 30th, 2020 implementation date for SEC Regulation Best Interest and the corresponding Customer Relationship Summary (Form CRS) is only one month away. At a recent SIFMA panel discussion covering a host of priorities amid COVID-19, FINRA legal, risk and supervision executives focused on some of the immediate concerns regarding Reg BI and Form CRS, including their examination focus and the suitability rule. Bates Compliance has the details.


Bates News, Bates Research, Compliance and Regulatory Alerts  |  05-20-20

Bates Practice Leadership Insights: What Compliance Officers are Thinking About Now

In this first of a series of conversations with Bates Group practice leaders, we caught up with Robert Lavigne, Managing Director and Bates Compliance Practice Leader, and Hank Sanchez, Esq., Bates Compliance Managing Director and former SEC and FINRA regulator, to get an understanding of what they are hearing from compliance officers right now, as well as advice for compliance teams in the "new normal."


Events, Compliance and Regulatory Alerts  |  04-28-20

This Week at Bates: Countdown to Form CRS for IAs Webinar

The countdown is on! Join our complimentary Form CRS for IAs webinar Thursday, April 30, 2020. Specifically designed for SEC-registered IAs, this webinar will help you tackle Form CRS with confidence. Presented by Bates Compliance.


Compliance and Regulatory Alerts  |  04-15-20

SEC Adopts Final Rule on Variable Contract Disclosure, Effective July 1, 2020

The SEC recently adopted new Rule 498A under the Securities Act, including various supporting amendments, to “simplify and streamline” the disclosure framework for variable annuities and variable life insurance contracts. As Bates described when the rule was first proposed, the new rule allows for a plain-English, easy to read, concise “summary prospectus” to satisfy obligations under the securities laws concerning variable product prospectus delivery. Read more to prepare for the July 1, 2020 effective date.


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