The Investment Advisor’s Compliance Guide, 3rd Edition

Les Abromovitz, Les Abromovitz

• Publisher: The National Underwriter Company
• Year: 2023
• Print ISBN: 9781954096929
• eBook ISBN: 9781954096936
• Edition: 3
• Topic: Personal Development
• Subtopic: Insurance

The Investment Advisor's Compliance Guide, 3rd Edition delivers a concise yet comprehensive explanation of the rules and how they affect the work you do on a daily basis-no matter where you're registered. It can be used as basic training for new Investment Advisor Representatives (IARs), as well as seasoned professionals. Best of all, it's in plain English and will be helpful to both SEC and state-registered investment advisors (RIAs), as well as IARs. This title:

• Covers the SEC's new marketing rule effective November, 2022, including new rules on advertising
• Identifies investment advisors' fiduciary duties, including the Investment Advisers Act's requirement to seek best execution for their clients
• Explains the registered investment advisor (RIA) registration requirements with either the Securities and Exchange Commission or state regulators
• Describes how to deal with client complaints as well as how to meet and exceed client expectations, as well as advice on how to deal with senior investors
• Provides the latest guidance from the NASSA, including the latest NASAA adviser's guide and model rules
• Helps Chief Compliance Officers to identify situations that may subject them to personal liability
• Provides advice on Form ADV, the form used by investment advisers to register with both the Securities and Exchange Commission (“SEC”) and state securities authorities, including how misstatements on Form ADV can lead to serious compliance issues
• Describes how to deal with client complaints as well as how to meet and exceed client expectations, as well as advice on how to deal with senior investors

New in the 2023 Edition:

• A new chapters on the SEC's Marketing Rule, including the use of testimonials, endorsements, third-party ratings, and performance advertising
• Analysis of the SEC's new strategic plan for fiscal years 2022 through 2026, including the goals of protecting families against fraud and manipulation, developing a robust regulatory framework, and supporting a skilled workforce that is diverse and inclusive
• Personal liability issues facing Chief Compliance Officers (CCOs), including a discussion of the the SEC Commissioner's 2022 personal liability analysis and the National Society of Compliance Professionals (NSCP)'s Firm and CCO Liability Framework to provide guidance to CCOs
• Update on the SEC's 2022 Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Conflicts of Interest
• Impact of the pandemic on RIAs' compliance obligations
• The use and misuse of today's top social media platforms
• How new forms of communication can create compliance problems
• Form CRS and Regulation Best Interest compliance issues
• New discussion of senior clients, including coverage of the NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation

Topics Covered:

• The SEC's new marketing rule, including discussion of advertising services
• Registration requirements for Investment Advisor Representatives
• The anti-fraud provisions of the Investment Advisers Act, including disclosure of conflicts of interest
• The code of ethics rule, including the purpose of the rule and insider trading
• Filing and updating of Form ADV
• Client communication and miscommunication, including the use of social media
• Analysis of the Investment Advisers Act's “Compliance Program Rule,” which requires advisors registered with the SEC to adopt and implement written compliance policies and procedures
• Issues related to fee miscalculations, including SEC warnings to about correctly aggregating household assets for purposes of fee calculations and over-billing of advisory fees
• Requirements for advisory contracts, including language to include in those contracts
• Fiduciary duty owed by investment advisors, including the fiduciary duty owed by robo-advisors and the best execution role
• Meeting and exceeding clients' expectations
• Business continuity rules and succession planning
• The pay-to-play rule

Table of contents

• Title
• Copyright
• About ThinkAdvisor
• Acknowledgment
• About the Author
• Introduction
• Chapter 1: Regulatory Oversight of Investment Advisors
• Chapter 2: Differences between State and SEC Regulation of Investment Advisors
• Chapter 3: Registration Requirements for Investment Advisor Representatives (IARs)
• Chapter 4: Risk-Based Oversight of Investment Advisors
• Chapter 5: The Need for Thorough and Effective Policies and Procedures
• Chapter 6: The Few and the Proud: Chief Compliance Officers
• Chapter 7: Anti-Fraud Provisions of the Investment Advisers Act
• Chapter 8: Scope of the Fiduciary Duty Owed by Investment Advisors
• Chapter 9: Conflicts of Interest for the Conflicted Advisor
• Chapter 10: Code of Ethics Rule
• Chapter 11: The Form ADV and Why It’s so Important
• Chapter 12: Updating Form ADV and Form U4
• Chapter 13: Fee-Related Issues Can Cost RIAs
• Chapter 14: Do’s and Don’ts of Advisory Contracts
• Chapter 15: Dealing with Qualified Clients and Accredited Investors
• Chapter 16: Nothing but the Best Execution
• Chapter 17: Client Commission Practices and Soft Dollars
• Chapter 18: Agency and Principal Transactions
• Chapter 19: Trading Practices and Errors
• Chapter 20: Proxy Voting and Fiduciary Duty
• Chapter 21: The Custody Rule and its Ramifications
• Chapter 22: Business Continuity Plans and Succession Planning
• Chapter 23: Conducting Due Diligence of Sub-Advisors and Third-Party Advisors
• Chapter 24: Client Communication and Miscommunication
• Chapter 25: The Long-Awaited Marketing Rule
• Chapter 26: Use and Misuse of Social Media
• Chapter 27: Protecting Clients’ Privacy
• Chapter 28: Cybersecurity for the Insecure Advisor
• Chapter 29: Books and Records Rule
• Chapter 30: Preventing and Dealing with Client Complaints
• Chapter 31: Meeting and Exceeding Clients’ and Regulators’ Expectations
• Chapter 32: Best Practices for Working with Senior Investors
• Chapter 33: Whistleblowers
• Chapter 34: Pay-to-Play Rule
• Chapter 35: Surveying the Regulatory Landscape
• Appendix A
• Appendix B
• Index
• Back Page