Regulatory Round Up - September 2024

The Advisors Act requires that registered investment advisors adopt a Code of Ethics which sets forth the standard of business conduct that are expected of a firm’s Supervised Persons / Access Persons. For RIAs, maintaining a strong Code of Ethics is crucial, especially considering recent SEC actions and ongoing regulatory changes. Here's a summary of the key points and best practices stemming from the Rule:

• Standard of Conduct: RIAs must ensure that their Code of Ethics clearly states their fiduciary duty owed to clients. This includes setting a high standard of business conduct for all supervised persons. A well-defined standard of conduct not only satisfies regulatory requirements but also builds trust with clients.
• Compliance with Securities Laws: A Firm’s Code of Ethics should include explicit provisions for adhering to the Investment Advisers Act and related federal and state regulations. This ensures that all advisory activities are conducted within the legal framework, reducing the risk of non-compliance.
• Personal Securities Transactions: One of the critical aspects of a Code of Ethics is the monitoring and documentation of personal securities transactions. RIAs should have systems in place to collect and review reports on personal securities holdings and transactions from all access persons ensuring no conflicts of interest arise.

How does your firm address the challenges of Code of Ethics compliance, personal securities trading, and Access person oversight? This month, True West is proud to introduce True West Tech—our advanced solution designed to refine and streamline your monitoring processes. Featuring intuitive and robust technology, True West Tech ensures you are well-prepared for regulatory reviews and enables efficient management of compliance. Stay tuned for more updates and discover how True West Tech can elevate your oversight capabilities!