SEC Year in Review for Advisors
So far 2022 has been one of the busiest regulatory years we have seen!
Here we leave you with three takeaways for traditional finance and blockchain compliance programs:
- Follow Gensler & other top regulators on Twitter
- Basics are important. Have an independent review of your program
- Understand operational risks & build resiliency. Use technology for duty of loyalty (conflicts), transparency (performance & costs/expenses), and care (conduct standards, ESG)
- A must-see is the debate on blockchain and DeFi regulatory approach. Click here to watch it!
- The FTX Breach article is an important reminder about the duty to users/customers
2022 SEC Wrap Up
Here is an inventory to help you recap SEC priorities for the testing of your compliance program.
1. Marketing & Biz Dev
- Risk Alert: Examination Focused on the New Investment Adviser – Marketing Rules
SEC Statements on Cybersecurity
- Cybersecurity Risk Management Proposal – Commissioner Crenshaw
- Cybersecurity Risk Management – Commissioner Lee
- Cybersecurity Risk Management – Commissioner Peirce
- Cybersecurity Reforms – Commissioner Gensler
4. Standard of Conduct
- Advisory Fraud – Statement on Jury’s Verdict in Trial of Ambassador Advisors, LLC
- Advisory Fraud / Breach of Fiduciary Duties – Statement on Decision in Jury Trial of Dean McDermott
5. ESG Investing Practices
6. Information & Operational Resilience
- Informational Security & Operational Resiliency: Investment Adviser MNPI Compliance Issues
- Fixed Income / Munis: Municipal Advisor Examinations