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Your professionally curated research and reference resource fully integrating treatise and how-to guidance with underlying laws, rules, interpretations, and hundreds of sample documents.

WhaHoo!  New textbook published!

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We're pleased top announce that Karl is co-author of the first new textbook about the 40 Acts in 30 years! Investment Management Regulation: An Introduction to Principles and Practices. Available now at cap-press.com

Adviser Regulatory & Compliance News

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Maryland Joins Fiduciary Standard Hunt

February 8, 2019

Maryland is joining the effort of states to regulate securities brokers and insurance agents as fiduciaries. Legislation was introduced this week in the Maryland state house containing a brief provision that would require brokers and insurance agents to act as fiduciaries in the best interests of their customers, i.e., "without regard to" their own financial interests. Maryland's actions are part of a larger trend of states seeking to regulate fiduciary standards. The bill entitled the "Financial Consumer Protection Act of 2019" can be accessed by clicking the heading to this article.

Continued State Action on Fiduciary Standards

January 25, 2019

Our friends at the Wagner Law Group have published a nice summary of state actions regarding establishment of fiduciary standards for advisers. Nevada is the latest state to propose a fiduciary standard. The article is reprinted below--please click the headline to access the reprint.

Gov’t Shutdown Impacts SEC and Industry

January 9, 2019

The on-going government shutdown has had some severe impacts on the SEC and its Div. of Investment Management. According to our discussions with various compliance folks and '40 Act counsel, the impacts are increasingly troublesome for their clients. Impacts include: inability to complete registration of new advisers; inability to get effectiveness of fund registration statements (other than those going automatically effective); and administrative actions and cases have ground to a halt as have inspections and examinations. In other branches of the SEC activities impacted by the shutdown include review of financial filings like 10Ks under the '34 Act and the review of IPO offerings/registrations under the '33 Act.

OCIE Risk Alert on Electronic Messaging

December 25, 2018

OCIE released a Risk Alert on Dec. 14, 2018 concerning the use of electronic messaging systems by registered investment advisers and their personnel. The Alert cites the staff’s observations from an initiative in 2018 that surveyed advisers regarding their use of electronic messaging. The Alert “reminds” advisers of their obligations regarding business communications under the Advisers Act that may apply to electronic messages. Electronic messages are defined very broadly and include “written business communications” via text message, instant message, personal/private message, personal email, personal websites and social media posts that are “conducted on the adviser’s systems or third-party applications...or platforms” or sent on adviser computers, adviser-issued mobile devices or personally owned devices that are used for business purposes, but not emails via an adviser’s email system. A key point made in the Alert is the need of Advisers to improve their relevant systems, policies and procedures regarding such electronic messages and systems. The headline to this story has a link connecting you to the Risk Alert.

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