Practicing RIA Compliance
A Primer On What Not To Do

Since we work in the investment advice and securities industry, it is axiomatic that we operate in a regulated environment. Employees in this field, from CEOs on down, and since time out of mind, have bemoaned the numerous rules and regulations that govern our everyday activities.

This is true. Depending on the type of products you offer, your registration status, and other factors, you may have at least five regulatory bodies to which you are accountable.

It could be worse. Take a look at this.

This may be an “apples to oranges” comparison, but it’s all still fruit. A lot of these industries, and the companies operating within these categories, may not be subject to annual filings, surprise regulatory exams, and the vicissitudes that come with working directly with an easily swayed and fickle public.

Investment advisory and securities professionals at larger firms have internal compliance departments that “help” with understanding and complying with the applicable rules that govern their activities.

Smaller firms (those who do not have the resources to have separate compliance departments) must take time out of their days and lives to get educated about what rules apply to them, develop internal policies and procedures based on those rules, and then implement them at the firm.

Here are a number of things that well-intentioned Chief Compliance Officers and other compliance professionals often do that chip away at their precious time.

  1. Use news and public relations headlines to set compliance objectives at their firm
  2. Thinking that each activity within the firm poses an equal amount of risk as every other activity
  3. Believing that new software will solve all of their problems
  4. Not realizing that not all regulations apply to the firm 

Within the next few weeks, I’ll be diving into one or more of the above to explain the whys and wherefores.

Practicing RIA Compliance
Venturis Solutions, Paul Mallory 5 October, 2022
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The DOL Fiduciary Rule
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