Regulatory Round Up - May 2024

In this month's edition of True West's Regulatory Round-Up, we spotlight the vital role of compliance manuals in adhering to regulatory standards, drawing from the 2017 SEC Risk Alert. This issue delves into the most common compliance pitfalls related to the Compliance Rule, Regulatory filings, Custody Rule, Code of Ethics, and Books and Records Rule, emphasizing the necessity of maintaining up-to-date and accurate compliance manuals.A significant focus this month is on the increased scrutiny of electronic communications by the SEC. The recent crackdown, initially targeting banks and broker-dealers, has expanded to investment advisors, with substantial fines being imposed for non-compliance. We discuss the best practices for maintaining compliant communication channels and provide a sample language update for your firm's Compliance Manual to help navigate this complex landscape.

We also review the SEC's recent Risk Alert on Marketing Rule compliance, highlighting frequent areas of deficiency and providing strategic insights on how to avoid common pitfalls. The complexities of the Marketing Rule's General Prohibitions are explored, underscoring the need for balanced and substantiated marketing materials.

As your compliance partners, True West remains dedicated to guiding you through these regulatory complexities with proactive advice and practical tools. Stay tuned for continuous updates and resources that help ensure your firm's compliance strategies are both effective and current.