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Securities Enforcement Actions Trends and Why Investment Advisers Should Take Note

Friday, October 21, 2016

Ronak Patel and Toby Galloway, both partners with Kelly Hart & Hallman LLP, recently did a deep dive into the enforcement action results of 2016. Their article, “Securities Enforcement Actions Trends and Why Investment Advisers Should Take Note“, is well worth reading.

Here is an excerpt — ” In recent years, securities regulators have enhanced their risk identification processes and increased the use of big data analytics to bolster their oversight of asset managers. Furthermore, revitalized efforts to enforce the broader scope of investment advisers’ fiduciary duty may also be a cause for increased enforcement activity. As a result, recent enforcement matters against investment advisers include numerous actions aimed at addressing issues with long existing practices and at encouraging meaningful enhancements to investment advisory services.” … “Many financial service professionals do not have the time, resources, or expertise to prepare effectively for regulatory scrutiny. However, investing some time into basic considerations is not only feasible but potentially invaluable. In addition to bolstering protections in regulatory matters, considered due diligence on supervisory controls may support your firm’s efforts to attract assets from sophisticated investors.”

Mr. Patel is a former Deputy Securities Commissioner of Texas and Mr. Galloway is a former attorney with the United States Securities and Exchange Commission.

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Red Oak Compliance Solutions is the global advertising review software of choice in the financial services industry. It is a comprehensive suite of SEC 17A-4 compliant features that are 100% books and records compliant and provides clients with 35% faster approvals and 70% fewer touches or better. We also offer Smart Review(SM), which solves for the storage and maintenance of disclosures, helping firms reduce risk, decrease review times, and increase the speed of distribution of marketing materials. Smart Registration(SM) automates the licensing and registration management process to help reduce regulatory risk and time spent on manual processes. Overall, Red Oak allows firms to minimize risk, reduce costs, and increase compliance review process effectiveness and efficiencies.