The Insider


The Departure of the Chief Compliance Officer Prior to a Regulatory Audit

Background The loss of a key senior professional is significant at any time. The significance is heightened when the departure takes place shortly before a regulatory audit. One company was faced with this situation with the departure of its Chief Compliance Officer within two months of a regulatory audit. Right after the departure of the … read more

The Enterprising Firm Creating a Broker/Dealer

Background An enterprising firm had begun contemplating whether they should form a broker/dealer. They had been working with corporations and various institutions in providing strategic consulting advice on strategic partnerships, mergers and acquisitions, capital raises, and corporate restructurings. The firm wanted to enhance their business by offering private placements and have the opportunity to receive … read more

The National Speaker and Marketing Company Expanding their Reach

Background A well-known national speaker was seeking to expand the use of his seminars among financial professionals. He had engaged a national marketing company to assist in the design and marketing of his seminar program. The national speaker and marketing company had found over time that a lot of broker/dealers would not permit the use … read more

The Advisory Firm that Needs Updated Procedures

Background An investment adviser was in the midst of a SEC audit. The audit had been consuming significant amounts of time. It was clear to the firm and the SEC that the investment adviser would need to revise or create new compliance policies and procedures. The Chief Compliance Officer contacted FIC indicating that his firm … read more

Establishing an Investment Adviser

Background Over the last decade, there has been increasing interest on the part of entities and individuals to form investment advisers. This is evident based on statistical evidence and experiences of FIC. The following paragraphs provide some basic information on starting an investment adviser. Regulatory Agencies The primary regulator(s) with whom you will seek approval … read more

Annual Compliance Reviews

Background Broker/dealers and SEC registered investment advisers are responsible for conducting annual reviews of their supervisory controls and compliance programs, respectively. The following paragraphs provide some basic information on annual compliance reviews. Requirements for Broker/Dealers For most broker/dealers, annual reviews are required to be conducted of their: Supervisory Controls; Anti-Money Laundering Compliance Program; Business Continuity … read more

Compliance Policies and Procedures

Background Broker/dealers and investment advisers are required to maintain compliance policies and procedures, also known as written supervisory procedures. The maintenance and establishment of compliance policies and procedures proves to be a daunting task that is a considerable time commitment. Compliance professionals and departments frequently have difficulty in timely updating policies either due to time, … read more

Establishing a Broker/Dealer

Background Making a decision to start a broker/dealer can be a daunting task where much time and deliberation needs to be applied. Prior to starting the process for the establishment of a broker/dealer, all individuals and entities should ask the following questions: Why do you want or need to create a broker/dealer?; Are there alternatives … read more