National Compliance Services Inc.

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  At SSG, a Focus on Compliance, Including Expert Advice for State- and SEC-Registered RIAs

  By James J. Green, AdvisorOne  |  March 2, 2012

  Some states are shifting field examiners to handle registration duties for the “Big Switch,” says Chris Winn of AdvisorAssist; states reaching out to RIAs, says NCS’ Kellli Capitano.

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  Client Commission Practices and Soft Dollars

  By Les Abromovitz  |  January 1, 2012

  RIAs should always evaluate whether the products and services they receive from broker-dealers are appropriate. The SEC suggested that an RIA’s failure to stay within the scope of the Section 28(e) safe harbor may violate the advisor’s fiduciary duty to clients, so RIAs must evaluate their soft dollar relationships on a regular basis to ensure they are disclosed properly and that they do not negatively impact the best execution of clients’ transactions.

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  Code of Ethics Rule

  By Les Abromovitz  |  January 1, 2012

  The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.  

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  Nothing but the Best Execution

  By Les Abromovitz  |  January 1, 2012

  Along with the many other fiduciary obligations owed by RIAs, firms owe a duty to seek best execution of clients’ transactions.  If they fail to do, RIAs violate Section 206 of the Investment Advisers Act.

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  Privacy Policies and Rules

  By Les Abromovitz  |  January 1, 2012

  Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients’ privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.

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  Proxy Voting

  By Les Abromovitz  |  January 1, 2012

  RIAs are not required to vote proxies on behalf of their clients. However, when an RIA does assume responsibility for voting proxies, the firm’s policies and procedures should help to ensure that votes are cast in the best interest of clients.

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  The New and Improved Form ADV

  By Les Abromovitz  |  January 1, 2012

  Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.

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  Using Solicitors to Attract Clients

  By Les Abromovitz  |  January 1, 2012

  Rule 206(4)-3 under the Investment Advisors Act establishes requirements governing cash payments to solicitors. The rule permits payment of cash referral fees to individuals and companies recommending clients to an RIA, but requires four conditions are first satisfied.