MyComplianceOffice Blog

The Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) recently published the Risk Alert Observations from Examinations of Investment Advisers Managing Private Funds. 

The Risk Alert covers three general areas of deficiencies that the OCIE has identified in examinations of private fund advisers: conflicts of interest, fees and expenses, and policies and procedures relating to material non-public information (MNPI). The alert outlines concerns and compliance issues observed during examinations of registered investment advisers that manage private equity funds or hedge funds—and serves notice that the SEC will continue to put a high priority on customer well-being.

At the beginning of the Covid-19 crisis, the FCA released a statement, where the regulator has shown its concerns regarding companies’ capacity to fight against market abuse considering the context of new working conditions. Earlier, the FCA’s Executive Director of Enforcement and Market Oversight at the FCA, Mark Steward gave a speech on market integrity and how the regulator has been approaching and investigating market abuse cases.

A compliance officer's role includes effectively managing conflicts of interest to enhance a firm's conduct culture. One of the ways to do this is a well designed conflict of interest policy that add clarity to the decision process. Below are a few suggestions to ensure that your policy is in good shape for 2020.

Will you be ready to comply with Regulation Best Interest on June 30, 2020? The new rules and interpretations outline requirements instructing broker-dealers and investment advisors to not put their own financial interests ahead of the best interests of retail customers when making recommendations and to address conflicts of interest.

On June 5, 2019, the SEC announced new rules and interpretations clarifying required standards of conduct for broker-dealers and investment advisers when advising retail customers. Firms must be ready to comply with Regulation Best Interest and Form CRS by June 30, 2020.