{ "schemaVersion": "1.0.0", "releaseVersion": null, "status": "draft", "publishedAt": null, "updatedAt": null, "notice": "Not legal advice. Preparation support, not an assessment. The practice questions are Taft's own and are not a regulator's questions. Deadline references quote the published text; your own filings, correspondence and advisers govern what applies to your firm.", "attribution": "Taft Compliance Group. Cite Taft and the underlying official sources.", "reuseTerms": "Undecided: not approved for public release.", "scope": { "audiences": [ "SEC-registered investment advisers", "Money services businesses", "Broker-dealers", "Institutional investment managers" ], "regulators": [ "SEC Division of Examinations", "FinCEN" ], "inclusions": [ "United States federal material only, quoted from the current eCFR text, the Federal Register, sec.gov and fincen.gov", "Practice questions written by Taft, with the official passage that shows why the topic matters", "Deadline references quoted from the rule text with their conditions intact" ], "exclusions": [ "FINRA rules and FINRA publications, which are not reproduced or cited", "State regulators", "Bank examination manuals and bank regulators", "Registered investment companies", "Any due-date calculation" ] }, "sources": [ { "id": "src-17cfr-275-206-4-7", "url": "https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.206(4)-7", "publisher": "Office of the Federal Register, eCFR", "title": "17 CFR 275.206(4)-7 Compliance procedures and practices", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 275.206(4)-7, introductory text and paragraphs (a) to (c)", "passage": "If you are an investment adviser registered or required to be registered under section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3), it shall be unlawful within the meaning of section 206 of the Act (15 U.S.C. 80b-6) for you to provide investment advice to clients unless you: (a) Policies and procedures. Adopt and implement written policies and procedures reasonably designed to prevent violation, by you and your supervised persons, of the Act and the rules that the Commission has adopted under the Act; (b) Annual review. Review, no less frequently than annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation; and (c) Chief compliance officer. Designate an individual (who is a supervised person) responsible for administering the policies and procedures that you adopt under paragraph (a) of this section." }, { "id": "src-17cfr-275-204-1", "url": "https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.204-1", "publisher": "Office of the Federal Register, eCFR", "title": "17 CFR 275.204-1 Amendments to Form ADV", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 275.204-1(a)", "passage": "(a) When amendment is required. You must amend your Form ADV (17 CFR 279.1): (1) Parts 1 and 2: (i) At least annually, within 90 days of the end of your fiscal year; and (ii) More frequently, if required by the instructions to Form ADV. (2) Part 3 at the frequency required by the instructions to Form ADV." }, { "id": "src-17cfr-275-204a-1-reports", "url": "https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.204A-1", "publisher": "Office of the Federal Register, eCFR", "title": "17 CFR 275.204A-1 Investment adviser codes of ethics", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 275.204A-1(b)(1)(ii) and (b)(2)(ii)", "passage": "(ii) Timing of holdings reports. Your access persons must each submit a holdings report: (A) No later than 10 days after the person becomes an access person, and the information must be current as of a date no more than 45 days prior to the date the person becomes an access person. (B) At least once each 12-month period thereafter on a date you select, and the information must be current as of a date no more than 45 days prior to the date the report was submitted. [...] (2) Transaction reports. The code of ethics must require access persons to submit to your chief compliance officer or other persons you designate in your code of ethics quarterly securities transactions reports that meet the following requirements: [...] (ii) Timing of transaction reports. Each access person must submit a transaction report no later than 30 days after the end of each calendar quarter, which report must cover, at a minimum, all transactions during the quarter." }, { "id": "src-17cfr-275-204-2", "url": "https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.204-2", "publisher": "Office of the Federal Register, eCFR", "title": "17 CFR 275.204-2 Books and records to be maintained by investment advisers", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 275.204-2(e)(1)", "passage": "(e)(1) All books and records required to be made under the provisions of paragraphs (a) to (c)(1)(i), inclusive, and (c)(2) of this section (except for books and records required to be made under the provisions of paragraphs (a)(11), (a)(12)(i), (a)(12)(iii), (a)(13)(ii), (a)(13)(iii), (a)(16), and (a)(17)(i) of this section), shall be maintained and preserved in an easily accessible place for a period of not less than five years from the end of the fiscal year during which the last entry was made on such record, the first two years in an appropriate office of the investment adviser." }, { "id": "src-17cfr-275-206-4-2", "url": "https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.206(4)-2", "publisher": "Office of the Federal Register, eCFR", "title": "17 CFR 275.206(4)-2 Custody of funds or securities of clients by investment advisers", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 275.206(4)-2(a)(3) and (a)(4)", "passage": "(3) Account statements to clients. You have a reasonable basis, after due inquiry, for believing that the qualified custodian sends an account statement, at least quarterly, to each of your clients for which it maintains funds or securities, identifying the amount of funds and of each security in the account at the end of the period and setting forth all transactions in the account during that period. (4) Independent verification. The client funds and securities of which you have custody are verified by actual examination at least once during each calendar year, except as provided below, by an independent public accountant, pursuant to a written agreement between you and the accountant, at a time that is chosen by the accountant without prior notice or announcement to you and that is irregular from year to year." }, { "id": "src-17cfr-240-13f-1", "url": "https://www.ecfr.gov/current/title-17/chapter-II/part-240/section-240.13f-1", "publisher": "Office of the Federal Register, eCFR", "title": "17 CFR 240.13f-1 Reporting by institutional investment managers of information with respect to accounts over which they exercise investment discretion", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 240.13f-1(a)(1)", "passage": "(a)(1) Every institutional investment manager which exercises investment discretion with respect to accounts holding section 13(f) securities, as defined in paragraph (c) of this section, having an aggregate fair market value on the last trading day of any month of any calendar year of at least $100,000,000 shall file a report on Form 13F (§ 249.325 of this chapter) with the Commission within 45 days after the last day of such calendar year and within 45 days after the last day of each of the first three calendar quarters of the subsequent calendar year." }, { "id": "src-31cfr-1022-380-a", "url": "https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1022/section-1022.380", "publisher": "Office of the Federal Register, eCFR", "title": "31 CFR 1022.380 Registration of money services businesses", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 1022.380(a)(1)", "passage": "Except as provided in paragraph (a)(3) of this section, relating to agents, and except for sellers of prepaid access as defined in § 1010.100(ff)(7) of this chapter to the extent that they are not already agents, each money services business (whether or not licensed as a money services business by any State) must register with FinCEN. Each provider of prepaid access must identify each prepaid program for which it is the provider of prepaid access. Each money services business must, as part of its registration, maintain a list of its agents as required by 31 U.S.C. 5330 and this section." }, { "id": "src-31cfr-1022-380-b", "url": "https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1022/section-1022.380", "publisher": "Office of the Federal Register, eCFR", "title": "31 CFR 1022.380 Registration of money services businesses", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 1022.380(b)(2) and (b)(3)", "passage": "(2) Registration period. A money services business must be registered for the initial registration period and each renewal period. The initial registration period is the two-calendar-year period beginning with the calendar year in which the money services business is first required to be registered. However, the initial registration period for a money services business required to register by December 31, 2001 (see paragraph (b)(3) of this section) is the two-calendar year period beginning 2002. Each two-calendar-year period following the initial registration period is a renewal period. (3) Due date. The registration form for the initial registration period must be filed on or before the end of the 180-day period beginning on the day following the date the business is established. The registration form for a renewal period must be filed on or before the last day of the calendar year preceding the renewal period." }, { "id": "src-31cfr-1010-306", "url": "https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1010/section-1010.306", "publisher": "Office of the Federal Register, eCFR", "title": "31 CFR 1010.306 Filing of reports", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 1010.306(a)(1) and (a)(2)", "passage": "(a)(1) A report required by § 1010.311 or § 1021.311, shall be filed by the financial institution within 15 days following the day on which the reportable transaction occurred. (2) A copy of each report filed pursuant to §§ 1010.311, 1010.313, 1020.315, 1021.311 and 1021.313, shall be retained by the financial institution for a period of five years from the date of the report." }, { "id": "src-31cfr-1022-320", "url": "https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1022/section-1022.320", "publisher": "Office of the Federal Register, eCFR", "title": "31 CFR 1022.320 Reports by money services businesses of suspicious transactions", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 1022.320(b)(3)", "passage": "(3) When to file. A money services business subject to this section is required to file each SAR no later than 30 calendar days after the date of the initial detection by the money services business of facts that may constitute a basis for filing a SAR under this section." }, { "id": "src-31cfr-1023-320", "url": "https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1023/section-1023.320", "publisher": "Office of the Federal Register, eCFR", "title": "31 CFR 1023.320 Reports by brokers or dealers in securities of suspicious transactions", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 1023.320(b)(3)", "passage": "(3) When to file. A SAR shall be filed no later than 30 calendar days after the date of the initial detection by the reporting broker-dealer of facts that may constitute a basis for filing a SAR under this section. If no suspect is identified on the date of such initial detection, a broker-dealer may delay filing a SAR for an additional 30 calendar days to identify a suspect, but in no case shall reporting be delayed more than 60 calendar days after the date of such initial detection." }, { "id": "src-31cfr-1010-430", "url": "https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1010/section-1010.430", "publisher": "Office of the Federal Register, eCFR", "title": "31 CFR 1010.430 Nature of records and retention period", "sourceKind": "rule", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "§ 1010.430(d)", "passage": "(d) All records that are required to be retained by this chapter shall be retained for a period of five years. Records or reports required to be kept pursuant to an order issued under § 1010.370 of this chapter shall be retained for the period of time specified in such order, not to exceed five years. All such records shall be filed or stored in such a way as to be accessible within a reasonable period of time, taking into consideration the nature of the record, and the amount of time expired since the record was made." }, { "id": "src-fr-2025-24184", "url": "https://www.federalregister.gov/documents/2026/01/02/2025-24184/delaying-the-effective-date-of-the-anti-money-launderingcountering-the-financing-of-terrorism", "publisher": "Office of the Federal Register (Financial Crimes Enforcement Network final rule)", "title": "Delaying the Effective Date of the Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers, 91 FR 36", "sourceKind": "official-release", "publishedDate": "2026-01-02", "effectiveDate": "2028-01-01", "checkedAt": "2026-11-09", "locator": "DATES section and Section II.B, Background (IA AML Effective Date NPRM)", "passage": "DATES: As of December 31, 2025, the effective date of the rule published September 4, 2024, at 89 FR 72156 is delayed until January 1, 2028. This rule is effective January 1, 2028. [...] In the IA AML Effective Date NPRM, FinCEN assessed that delaying the effective date of the IA AML Rule would pose a number of advantages, including providing FinCEN an opportunity to review the IA AML Rule and, as applicable, ensure the IA AML Rule is effectively tailored." }, { "id": "src-fr-2026-07033", "url": "https://www.federalregister.gov/documents/2026/04/10/2026-07033/anti-money-laundering-and-countering-the-financing-of-terrorism-programs", "publisher": "Office of the Federal Register (Financial Crimes Enforcement Network proposed rule)", "title": "Anti-Money Laundering and Countering the Financing of Terrorism Programs (proposed rule), 91 FR 18704", "sourceKind": "official-release", "publishedDate": "2026-04-10", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section I, Executive Summary, note on the investment adviser rule", "passage": "FinCEN notes this proposed rule does not propose any amendments to the final rule establishing AML/CFT and suspicious activity report (SAR) filing requirements for registered investment advisers and exempt reporting advisers, which has been delayed until January 1, 2028." }, { "id": "src-sec-priorities-2027-compliance", "url": "https://www.sec.gov/files/2027-exam-priorities.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Fiscal Year 2027 Examination Priorities (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section I.B, Compliance Programs, page 6", "passage": "The Division's evaluation of compliance program effectiveness is a critical element of the examination process. The Division will review key components of an adviser's compliance program that address areas of its business and operations such as marketing, valuation, trading, portfolio management, disclosure and filings, and custody, as appropriate for each specific examination. Examinations will also typically analyze an adviser's annual compliance review. The Division continues to prioritize review of whether policies and procedures are reasonably designed to address conflicts of interest, in light of a firm's particular operations, and to prevent advisers from placing their interests ahead of clients' interests. Examinations will focus on whether the policies and procedures are implemented, and whether disclosures address fee-related conflicts of interest, particularly those arising from account and product compensation structures." }, { "id": "src-sec-priorities-2027-fiduciary", "url": "https://www.sec.gov/files/2027-exam-priorities.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Fiscal Year 2027 Examination Priorities (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section I.A, Fiduciary Standards of Conduct, page 5", "passage": "The Division will prioritize reviewing advisers' fiduciary obligations relating to economic conflicts of interest. These reviews will assess whether advisers' financial conflicts may affect the impartiality of their advice in certain areas, such as fee rebates, fee and expense calculations, cash management, quid pro quo arrangements, deposits, and withdrawals." }, { "id": "src-sec-priorities-2027-never-examined", "url": "https://www.sec.gov/files/2027-exam-priorities.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Fiscal Year 2027 Examination Priorities (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section I.C, Never-Examined Advisers and Recently Registered Advisers, page 7", "passage": "The Division will continue to prioritize examinations of advisers that have never been examined, with particular emphasis on recently registered advisers. These examinations evaluate, among other things, the adviser's compliance with regulatory requirements and its processes for identifying, addressing, and disclosing risks and conflicts of interest." }, { "id": "src-sec-priorities-2027-third-party", "url": "https://www.sec.gov/files/2027-exam-priorities.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Fiscal Year 2027 Examination Priorities (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section I.A, Fiduciary Standards of Conduct, page 6", "passage": "The Division will also focus on advisers that use certain third-party service providers. This includes advisers using third parties to access clients' accounts, where existing controls may be insufficient to protect client assets and data." }, { "id": "src-sec-priorities-2027-bd-aml", "url": "https://www.sec.gov/files/2027-exam-priorities.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Fiscal Year 2027 Examination Priorities (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section III.D, Anti-Money Laundering (AML), page 8", "passage": "The Division will continue to focus on broker-dealers' AML programs and review whether broker-dealers are: (1) appropriately tailoring and updating their AML program to their business model and associated AML risks, including accounting for risks associated with omnibus accounts, particularly omnibus accounts maintained for foreign financial institutions and risks associated with significant growth in their business; (2) adequately conducting independent testing;" }, { "id": "src-sec-priorities-2027-cyber", "url": "https://www.sec.gov/files/2027-exam-priorities.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Fiscal Year 2027 Examination Priorities (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section VII.A.1, Cybersecurity, page 12", "passage": "The Division will continue to prioritize examinations focused on information security and operational resiliency, with particular emphasis on cybersecurity. Cybersecurity practices remain a key examination priority to help ensure the safeguarding of customer information. Examinations will review firms' policies and procedures regarding governance practices, data loss prevention, access controls, account management, and the response and recovery protocols for cyber-related incidents, including ransomware attacks. In addition, the Division will assess risks associated with registrants' increased use of third-party service providers and shared technologies, including the effectiveness of risk management in these areas." }, { "id": "src-sec-priorities-2027-tech", "url": "https://www.sec.gov/files/2027-exam-priorities.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Fiscal Year 2027 Examination Priorities (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section VII.A.2, Emerging Financial Technology, page 12", "passage": "The Division remains focused on registrants' use of certain products and services, such as automated investment tools and trading algorithms or platforms, and the risks associated with the use of emerging technologies and alternative data sources. The Division will prioritize firms that engage in activities such as automated investment advisory services, recommendations, and related tools and methods. When conducting these reviews, assessments generally will include whether: (1) representations are fair and accurate; (2) operations and controls are consistent with disclosures made to investors; and (3) algorithms lead to advice or recommendations consistent with investors' investment profiles or stated strategies." }, { "id": "src-sec-priorities-2027-sp", "url": "https://www.sec.gov/files/2027-exam-priorities.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Fiscal Year 2027 Examination Priorities (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section VII.A.3, Regulation S-ID and Regulation S-P, page 12", "passage": "Examinations will focus on whether firms have developed, implemented, and maintained reasonably designed policies and procedures that address administrative, technical, and physical safeguards to protect customer information, as required by Regulation S-P. In accordance with the amended rule, staff will evaluate response program policies and procedures for unauthorized access to or use of customer information, including customer notification procedures and oversight of service providers. Examiners will also review how firms are addressing operational risk, including technology risks, as part of their efforts to safeguard customer information." }, { "id": "src-sec-exam-handbook-requests", "url": "https://www.sec.gov/files/exam-handbook.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "The SEC Exam Handbook: A Practical Guide on Process and Engagement (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Information Requests, page 4", "passage": "After the exam is announced, the staff will send a letter formally notifying you of the examination and providing an initial request for information. The request will be made pursuant to the examination authority applicable to your firm, for example, section 204(a) of the Investment Advisers Act of 1940 for registered investment advisers. The information request will provide details about how to format and transmit the requested information." }, { "id": "src-sec-exam-handbook-letters", "url": "https://www.sec.gov/files/exam-handbook.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "The SEC Exam Handbook: A Practical Guide on Process and Engagement (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Examination Outcomes, page 9", "passage": "We refer to the third type of disposition letter as a deficiency letter. Most examinations conclude with such a letter. Our deficiency letters purposely do not mandate a particular corrective action beyond complying with applicable law." }, { "id": "src-sec-ra-annual-review-observations", "url": "https://www.sec.gov/files/examinations-observations-regarding-investment-adviser-annual-compliance-review-091426.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Examinations Observations Regarding Investment Adviser Annual Compliance Reviews (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2026-09-14", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section I, Introduction, pages 1 to 2", "passage": "The Division often requests information regarding advisers' annual reviews during examinations as part of its process to assess whether advisers are meeting their Compliance Rule obligations. The staff has observed, among other things, issues regarding: (1) the timeliness of annual reviews; (2) the completeness of the advisers' policies and procedures for conducting such assessments; (3) the alignment of the assessments performed in relation to the advisers' policies, procedures, and practices; (4) the documentation made and kept regarding those reviews; and (5) the resolution of corrective actions for matters identified during assessments." }, { "id": "src-sec-ra-annual-review-timing", "url": "https://www.sec.gov/files/examinations-observations-regarding-investment-adviser-annual-compliance-review-091426.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Examinations Observations Regarding Investment Adviser Annual Compliance Reviews (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2026-09-14", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section II, Conducting timely annual reviews, pages 1 to 2", "passage": "Conducting timely annual reviews. The staff observed advisers that did not perform reviews of their compliance policies and procedures, at least annually, to determine their adequacy and the effectiveness of their implementation, as required. Examples include advisers that: Had gaps in their annual reviews (e.g., conducting reviews for 2021 and 2023 but omitting 2022). Performed annual reviews for periods of greater than 12 months, including first reviews at 18 months post-registration with the Commission, as well as extended intervals due to business, operational, and personnel changes (e.g., Chief Compliance Officer (\"CCO\") departures)." }, { "id": "src-sec-ra-conflicts-2026", "url": "https://www.sec.gov/files/observations-ia-obligations-related-economic-conflicts-interest-060926.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Examinations Observations of Investment Adviser Obligations Related to Economic Conflicts of Interest (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2026-06-09", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section I, Introduction, pages 1 to 2", "passage": "During examinations of SEC-registered investment advisers (\"advisers\"), the Division prioritizes the review of economic incentives that advisers and their financial professionals may have to recommend certain products, services, or account types to their clients (e.g., the source and structure of compensation, revenue, or other economic benefits). In addition, the staff evaluates whether advisers are accurately calculating and charging clients advisory fees and expenses in accordance with client disclosures." }, { "id": "src-sec-ra-ia-documents-compliance", "url": "https://www.sec.gov/files/risk-alert-ia-risk-and-requesting-documents-090623.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Investment Advisers: Assessing Risks, Scoping Examinations, and Requesting Documents (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2023-09-06", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Attachment, Typical Initial Information Examiners Request of Investment Advisers: Compliance Program and Oversight Process; Valuation; Information Processing, Reporting, and Protection", "passage": "Compliance policies and procedures in effect during the examination period. Tests performed (i.e., compliance reviews, quality control analyses, surveillance, and/or forensic or transactional tests performed by the firm). Annual and/or interim reviews of policies and procedures, including any reports prepared. Record of compliance exceptions. Inventory of compliance risks and conflicts of interest that forms the basis for policies and procedures and notations regarding changes made to the inventory. Valuation process. Fair-valued and illiquid securities held by clients. Advisory fee calculations. Pricing overrides. Safeguards for the protection of customer records and information. Business continuity plan. Cybersecurity incidents or breaches (e.g., incident description, impact, and remediation)." }, { "id": "src-sec-ra-ia-documents-ethics-custody", "url": "https://www.sec.gov/files/risk-alert-ia-risk-and-requesting-documents-090623.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Investment Advisers: Assessing Risks, Scoping Examinations, and Requesting Documents (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2023-09-06", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Attachment, Typical Initial Information Examiners Request of Investment Advisers: Conflicts of Interest and Insider Trading; Marketing and Advertising; Custody", "passage": "Code of Ethics attestations. Exemptions from Code of Ethics for supervised persons. Reports of securities transactions reported by access persons. Fee splitting or revenue sharing arrangements. Testimonials and endorsements, including payments made and compensation received. Third-party ratings and rankings. Custodian identification and contact information for entities that maintain custody of client assets. Surprise examination documentation, such as engagement letters, client account lists, and reports, results, and recommendations. Auditor engagement letters, opinions, and findings. Custodial confirmation of positions for specific clients." }, { "id": "src-sec-ra-bd-aml-2023", "url": "https://www.sec.gov/files/risk-alert-aml-compliance-examinations-bd-073123.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Observations from Anti-Money Laundering Compliance Examinations of Broker-Dealers (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2023-07-31", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section I, independent testing observations, pages 3 to 4", "passage": "Broker-dealers that did not conduct testing in a timely manner or could not demonstrate (for example, by a report or other documentation) that they conducted such testing. Independent tests that appeared ineffective because: they did not cover aspects of the firm's business or AML program; the personnel conducting the testing was not independent or did not have the appropriate level of knowledge of the requirements of the BSA; Broker-dealers that did not timely address, or have procedures for addressing, issues identified by independent testing." }, { "id": "src-sec-ra-newly-registered-compliance", "url": "https://www.sec.gov/files/risk-alert-newly-registered-ias-032723.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Observations from Examinations of Newly-Registered Advisers (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2023-03-27", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Staff Observations, Compliance Policies and Procedures, pages 3 to 4", "passage": "The staff observed compliance policies and procedures that: (1) did not adequately address certain risk areas applicable to the firm, such as portfolio management and fee billing; (2) omitted procedures to enforce stated policies, [...] and/or (3) were not followed by advisory personnel, typically because the personnel were not aware of the policies or procedures or the policies or procedures were not consistent with their businesses or operations. [...] Used off-the-shelf compliance manuals that were not tailored for consistency with the advisers' operations and business lines. May not have devoted sufficient resources to comply with regulatory requirements and their own policies and procedures (e.g., advisers may have assigned additional and unrelated responsibilities to the chief compliance officer (\"CCO\"), resulting in limited time for the CCO to dedicate to compliance), or to ensure compliance personnel understood actual business practices. Did not have adequate business continuity plans, including succession plans." }, { "id": "src-sec-ra-newly-registered-disclosure", "url": "https://www.sec.gov/files/risk-alert-newly-registered-ias-032723.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Observations from Examinations of Newly-Registered Advisers (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2023-03-27", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Staff Observations, Disclosure Documents and Filings, page 4", "passage": "The staff observed required disclosure documents that contained omissions or inaccurate information and untimely filings (i.e., material or annual form updates were not made within prescribed timeframes or at all). The disclosure omissions and inaccuracies were related to advisers': (1) fees and compensation; (2) business or operations (including affiliates, other relationships, number of clients, and assets under management); (3) services offered to clients, such as disclosure regarding advisers' investment strategy (including the use of models), aggregate trading, and account reviews;" }, { "id": "src-sec-ra-private-funds-2022", "url": "https://www.sec.gov/files/private-fund-risk-alert-pt-2.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Observations from Examinations of Private Fund Advisers (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2022-01-27", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section III.C, Due Diligence", "passage": "EXAMS staff observed potential failures to conduct a reasonable investigation into an investment, to follow the due diligence process described to clients or investors, and to adopt and implement reasonably designed due diligence policies and procedures pursuant to the Compliance Rule: Lack of a reasonable investigation into underlying investments or funds. EXAMS staff observed advisers that did not perform reasonable investigations of investments in accordance with their policies and procedures, including the compliance and internal controls of the underlying investments or private funds in which they invested. In addition, the staff observed advisers that failed to perform adequate due diligence on important service providers, such as alternative data providers and placement agents." }, { "id": "src-sec-ra-branch-2023", "url": "https://www.sec.gov/files/risk-alert-safeguarding-info-branch-offices-042623.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Safeguarding Customer Records and Information at Branch Offices (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2023-04-26", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section III, Common Issues Related to Branch Office Governance, Vendor Management", "passage": "In assessing compliance with the Safeguards Rule, staff observed that while many firms implemented policies and procedures for safeguarding customer records and information for their main office, they often did not do so for branch offices. Firms use vendors to provide services such as cybersecurity, technology operations, and business applications. In many instances firms did not appear to reasonably ensure that their branch offices performed proper due diligence and oversight of their vendors as required by the firms' own policies and procedures." }, { "id": "src-sec-ra-marketing-2025", "url": "https://www.sec.gov/files/exams-riskalert-mrkt-rule-2512-508.pdf", "publisher": "U.S. Securities and Exchange Commission, Division of Examinations", "title": "Risk Alert: Additional Observations Regarding Advisers' Compliance with the Advisers Act Marketing Rule (staff statement)", "sourceKind": "regulator-guidance", "publishedDate": "2025-12-16", "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Section II.A, Observations Related to the Testimonials and Endorsements Provisions", "passage": "The Marketing Rule's Testimonials and Endorsements Provisions prohibit the use of testimonials and endorsements in advertisements unless the adviser satisfies certain disclosure and oversight conditions. These Provisions also prohibit advisers from compensating certain ineligible persons for providing testimonials or endorsements. The staff observed advisers using testimonials and endorsements that did not appear to comply with all or some of the requirements for both compensated and uncompensated testimonials and endorsements." }, { "id": "src-fincen-msb-registration-page", "url": "https://www.fincen.gov/resources/money-services-business-msb-registration", "publisher": "Financial Crimes Enforcement Network", "title": "Money Services Business (MSB) Registration", "sourceKind": "regulator-guidance", "publishedDate": null, "effectiveDate": null, "checkedAt": "2026-11-09", "locator": "Introductory text and Regulation Fact Sheet note", "passage": "The form, Registration of Money Services Business, FinCEN Form 107, must be completed and signed by the owner or controlling person and filed within 180 days after the date on which the MSB is established. Registration must be renewed every two years. This guidance is intended to clarify general issues arising under 31 CFR Chapter X (formerly 31 CFR Part 103). The guidance does not replace or supersede the regulations." } ], "trackerTemplate": { "fields": [ { "key": "requestId", "label": "Request ID", "type": "text", "required": true, "maxLength": 40, "helpText": "Your own reference for the request item, for example the item number from the request letter.", "sensitivityWarning": "", "provenance": "original-editorial", "reviewRef": "tpl-2026-11-a" }, { "key": "requestDescription", "label": "Request description", "type": "text", "required": true, "maxLength": 400, "helpText": "What was asked for, in your own words.", "sensitivityWarning": "Do not paste the regulator's letter, client names or account numbers.", "provenance": "original-editorial", "reviewRef": "tpl-2026-11-a" }, { "key": "topic", "label": "Topic", "type": "text", "required": false, "maxLength": 80, "helpText": "A short label such as compliance program, marketing, custody or books and records.", "sensitivityWarning": "", "provenance": "original-editorial", "reviewRef": "tpl-2026-11-a" }, { "key": "owner", "label": "Owner", "type": "text", "required": false, "maxLength": 80, "helpText": "Who gathers the item.", "sensitivityWarning": "A role is enough; a name is personal data.", "provenance": "original-editorial", "reviewRef": "tpl-2026-11-a" }, { "key": "requestedDate", "label": "Requested date", "type": "date", "required": false, "maxLength": null, "helpText": "The date the request reached you.", "sensitivityWarning": "", "provenance": "original-editorial", "reviewRef": "tpl-2026-11-a" }, { "key": "requestedByDate", "label": "Requested-by date (from your actual request)", "type": "date", "required": false, "maxLength": null, "helpText": "The date stated in the request you received. 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The 2027 priorities say the Division continues to prioritize examinations of advisers that have never been examined, with particular emphasis on recently registered advisers.", "status": "known", "sourceIds": [ "src-sec-ra-newly-registered-compliance", "src-sec-priorities-2027-never-examined" ], "evidenceLocators": [ "Staff Observations, Compliance Policies and Procedures", "Section I.C" ] }, "evidenceCues": [ { "text": "The policies in effect during the period, the tests performed on them and the training records.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-compliance" ], "evidenceLocators": [ "Attachment, Compliance Program and Oversight Process" ] } ], "followUps": [ "Which policy was last changed, and what prompted the change?" ], "applicability": "Advisers registered or required to be registered with the SEC; the observations come from examinations of newly registered advisers.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-newly-registered-compliance", "src-sec-priorities-2027-never-examined", "src-sec-ra-ia-documents-compliance" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-exam-process-roles", "audiences": [ "SEC-registered investment advisers", "Broker-dealers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Examination process", "evidenceCategory": "Governance records", "prompt": "Who at the firm takes the examination announcement call, who routes and tracks the initial request for information, and who owns the written response if a deficiency letter arrives?", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The exam handbook says the staff sends a letter formally notifying the firm of the examination with an initial request for information, and that most examinations conclude with a deficiency letter that does not mandate a particular corrective action beyond complying with applicable law.", "status": "known", "sourceIds": [ "src-sec-exam-handbook-requests", "src-sec-exam-handbook-letters" ], "evidenceLocators": [ "Information Requests", "Examination Outcomes, disposition letters" ] }, "evidenceCues": [], "followUps": [ "Where is the previous examination's correspondence, and who can find it today?" ], "applicability": "Firms examined by the SEC Division of Examinations. 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The 2027 priorities name fee rebates, fee and expense calculations and cash management among the areas reviewed.", "status": "known", "sourceIds": [ "src-sec-ra-conflicts-2026", "src-sec-priorities-2027-fiduciary" ], "evidenceLocators": [ "Section I, Introduction", "Section I.A, Fiduciary Standards of Conduct" ] }, "evidenceCues": [ { "text": "Advisory fee calculations and any fee splitting or revenue sharing arrangements.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-compliance", "src-sec-ra-ia-documents-ethics-custody" ], "evidenceLocators": [ "Attachment, Valuation", "Attachment, Conflicts of Interest and Insider Trading" ] } ], "followUps": [ "How are cash sweep or cash management arrangements disclosed, and who benefits from them?" ], "applicability": "Advisers registered or required to be registered with the SEC.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-conflicts-2026", "src-sec-priorities-2027-fiduciary", "src-sec-ra-ia-documents-compliance", "src-sec-ra-ia-documents-ethics-custody" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-form-adv-accuracy", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Disclosure documents and filings", "evidenceCategory": "Filings", "prompt": "Reconcile your current Form ADV against your actual fees, affiliates, client base and services, and show when the last annual updating amendment and any other-than-annual amendments were filed.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "Staff observed disclosure documents with omissions or inaccurate information and untimely filings, with the omissions related to fees and compensation, business or operations, and services offered to clients.", "status": "known", "sourceIds": [ "src-sec-ra-newly-registered-disclosure" ], "evidenceLocators": [ "Staff Observations, Disclosure Documents and Filings" ] }, "evidenceCues": [], "followUps": [ "Who signs off on each amendment, and what triggers an interim amendment at your firm?" ], "applicability": "Advisers registered or required to be registered with the SEC. The annual updating amendment timing is a deadline reference in this toolkit.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-newly-registered-disclosure" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-marketing-testimonials", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Marketing", "evidenceCategory": "Marketing materials", "prompt": "Show every advertisement in the review period that used a testimonial, endorsement or third-party rating, with the disclosures made, any compensation paid and the oversight records for each promoter.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "A December 2025 staff risk alert reported advisers using testimonials and endorsements that did not appear to comply with all or some of the requirements for compensated and uncompensated testimonials and endorsements.", "status": "known", "sourceIds": [ "src-sec-ra-marketing-2025" ], "evidenceLocators": [ "Section II.A" ] }, "evidenceCues": [ { "text": "Testimonials and endorsements, including payments made and compensation received, and third-party ratings and rankings.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-ethics-custody" ], "evidenceLocators": [ "Attachment, Marketing and Advertising" ] } ], "followUps": [ "How do you confirm a promoter is not an ineligible person before paying for an endorsement?" ], "applicability": "Advisers registered or required to be registered with the SEC.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-marketing-2025", "src-sec-ra-ia-documents-ethics-custody" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-code-of-ethics-reports", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Code of ethics", "evidenceCategory": "Personal trading records", "prompt": "Produce your access person list, the holdings and transaction reports for a sample quarter, the attestations and any exemptions granted, and show who reviewed the reports and when.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The typical initial request list includes code of ethics attestations, exemptions from the code for supervised persons, and reports of securities transactions reported by access persons.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-ethics-custody" ], "evidenceLocators": [ "Attachment, Conflicts of Interest and Insider Trading" ] }, "evidenceCues": [], "followUps": [ "How is a late or missing report handled?" ], "applicability": "Advisers registered or required to be registered with the SEC. Report timing is quoted in the deadline references.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-ia-documents-ethics-custody" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-custody-arrangements", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Custody", "evidenceCategory": "Custody records", "prompt": "Identify every arrangement that may give you custody of client funds or securities, name the qualified custodians, and show the custodian statements and any surprise examination documentation.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The typical initial request list includes custodian identification, surprise examination documentation and custodial confirmation of positions, and the 2027 priorities name custody among the compliance program components reviewed.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-ethics-custody", "src-sec-priorities-2027-compliance" ], "evidenceLocators": [ "Attachment, Custody", "Section I.B, Compliance Programs" ] }, "evidenceCues": [ { "text": "Engagement letters, client account lists and the accountant's reports and recommendations from any surprise examination.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-ethics-custody" ], "evidenceLocators": [ "Attachment, Custody" ] } ], "followUps": [ "Which arrangement was hardest to classify, and how was the decision documented?" ], "applicability": "Advisers registered or required to be registered with the SEC that have, or may have, custody.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-ia-documents-ethics-custody", "src-sec-priorities-2027-compliance" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-records-production", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Books and records", "evidenceCategory": "Records and systems", "prompt": "Show where the records on a typical initial request are kept, who can produce each one, and how long it takes to produce them in the format the request asks for.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The exam handbook says the staff sends a letter formally notifying the firm of the examination with an initial request for information, and that the request explains how to format and transmit the information.", "status": "known", "sourceIds": [ "src-sec-exam-handbook-requests" ], "evidenceLocators": [ "Information Requests" ] }, "evidenceCues": [ { "text": "The list of typical initial information requested of advisers, used as a dry-run index.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-compliance" ], "evidenceLocators": [ "Attachment" ] } ], "followUps": [ "Which record took longest to produce in your last dry run?" ], "applicability": "Advisers registered or required to be registered with the SEC. Retention periods are quoted in the deadline references.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-exam-handbook-requests", "src-sec-ra-ia-documents-compliance" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-valuation-process", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Valuation", "evidenceCategory": "Valuation records", "prompt": "Walk through the valuation of one fair-valued or illiquid position from pricing source to final value, including any pricing override and who approved it.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The typical initial request list includes the valuation process, fair-valued and illiquid securities held by clients, and pricing overrides, and the 2027 priorities name valuation among the compliance program components reviewed.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-compliance", "src-sec-priorities-2027-compliance" ], "evidenceLocators": [ "Attachment, Valuation", "Section I.B, Compliance Programs" ] }, "evidenceCues": [], "followUps": [ "How does the valuation feed the fee calculation for that account?" ], "applicability": "Advisers registered or required to be registered with the SEC.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-ia-documents-compliance", "src-sec-priorities-2027-compliance" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-customer-information-safeguards", "audiences": [ "SEC-registered investment advisers", "Broker-dealers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Cybersecurity and customer information", "evidenceCategory": "Information security records", "prompt": "Describe your administrative, technical and physical safeguards for customer information, your incident response program, your customer notification procedure and how you oversee service providers that hold customer data.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The 2027 priorities say examinations will focus on reasonably designed safeguards for customer information under Regulation S-P, and that staff will evaluate response program policies and procedures, customer notification procedures and oversight of service providers.", "status": "known", "sourceIds": [ "src-sec-priorities-2027-sp", "src-sec-priorities-2027-cyber" ], "evidenceLocators": [ "Section VII.A.3", "Section VII.A.1" ] }, "evidenceCues": [ { "text": "Safeguards for the protection of customer records and information, electronic access controls, and the record of any cybersecurity incidents with their remediation.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-compliance" ], "evidenceLocators": [ "Attachment, Information Processing, Reporting, and Protection" ] } ], "followUps": [ "When was the incident response plan last exercised, and what changed afterwards?" ], "applicability": "SEC-registered advisers and broker-dealers. Whether Regulation S-P applies to your firm is confirmed in the rule, not here.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-priorities-2027-sp", "src-sec-priorities-2027-cyber", "src-sec-ra-ia-documents-compliance" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-branch-office-controls", "audiences": [ "SEC-registered investment advisers", "Broker-dealers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Branch and remote offices", "evidenceCategory": "Supervision records", "prompt": "Explain how safeguarding of customer information, vendor due diligence and supervision work at each branch or remote office, and where they differ from the main office.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "A 2023 staff risk alert reported that many firms implemented safeguarding policies and procedures for their main office but often did not do so for branch offices, and that branch offices often did not perform the vendor due diligence the firm's own policies required.", "status": "known", "sourceIds": [ "src-sec-ra-branch-2023" ], "evidenceLocators": [ "Section III, Vendor Management" ] }, "evidenceCues": [ { "text": "The remote office or independent contractor oversight process.", "status": "known", "sourceIds": [ "src-sec-ra-ia-documents-compliance" ], "evidenceLocators": [ "Attachment, Compliance Program and Oversight Process" ] } ], "followUps": [ "Which branch was reviewed last, and what did the review cover?" ], "applicability": "Firms with locations other than a main office, including offices of independent contractors.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-branch-2023", "src-sec-ra-ia-documents-compliance" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-third-party-access", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Service providers", "evidenceCategory": "Vendor records", "prompt": "List every third party that can access client accounts or client data, and show the due diligence performed before onboarding and the ongoing oversight for each.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The 2027 priorities say the Division will focus on advisers that use third parties to access clients' accounts, where existing controls may be insufficient to protect client assets and data.", "status": "known", "sourceIds": [ "src-sec-priorities-2027-third-party" ], "evidenceLocators": [ "Section I.A, page 6" ] }, "evidenceCues": [], "followUps": [ "What happens to the third party's access when a client leaves?" ], "applicability": "Advisers registered or required to be registered with the SEC.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-priorities-2027-third-party" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-business-continuity", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Business continuity", "evidenceCategory": "Policies and procedures", "prompt": "Show your business continuity and succession plan, when it was last tested, and what would happen to client service if a key person were unavailable for a month.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "Staff observed newly registered advisers that did not have adequate business continuity plans, including succession plans, and the business continuity plan is on the typical initial request list.", "status": "known", "sourceIds": [ "src-sec-ra-newly-registered-compliance", "src-sec-ra-ia-documents-compliance" ], "evidenceLocators": [ "Staff Observations, Compliance Policies and Procedures", "Attachment, Information Processing, Reporting, and Protection" ] }, "evidenceCues": [], "followUps": [ "Who else can execute trades and move client money, and how is that access controlled?" ], "applicability": "Advisers registered or required to be registered with the SEC.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-newly-registered-compliance", "src-sec-ra-ia-documents-compliance" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-private-fund-due-diligence", "audiences": [ "SEC-registered advisers to private funds" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Private fund due diligence", "evidenceCategory": "Investment records", "prompt": "For one recent fund investment and one key service provider, show the due diligence performed against the process described to investors in the fund documents.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "Staff observed potential failures to conduct a reasonable investigation into an investment, to follow the due diligence process described to clients or investors, and to perform adequate due diligence on important service providers such as alternative data providers and placement agents.", "status": "known", "sourceIds": [ "src-sec-ra-private-funds-2022" ], "evidenceLocators": [ "Section III.C, Due Diligence" ] }, "evidenceCues": [], "followUps": [ "Where does the fund disclosure describe the process, and does the file match it?" ], "applicability": "SEC-registered advisers that manage private funds.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-private-funds-2022" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-automated-advice-representations", "audiences": [ "SEC-registered investment advisers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "Automated tools and emerging technology", "evidenceCategory": "Marketing materials", "prompt": "Show how statements about your automated investment tools, models or algorithms are checked against how those tools actually operate and against what clients were told.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The 2027 priorities say reviews of automated advisory services and related tools will generally include whether representations are fair and accurate, whether operations and controls are consistent with disclosures, and whether algorithms lead to advice consistent with investors' profiles or stated strategies.", "status": "known", "sourceIds": [ "src-sec-priorities-2027-tech" ], "evidenceLocators": [ "Section VII.A.2" ] }, "evidenceCues": [], "followUps": [ "Who can change a model, and how is a change tested and recorded?" ], "applicability": "Advisers that use automated investment tools, trading algorithms or alternative data.", "exclusions": "", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-priorities-2027-tech" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-bd-aml-independent-testing", "audiences": [ "Broker-dealers" ], "regulator": "SEC Division of Examinations", "jurisdiction": "United States (federal)", "topic": "AML program testing", "evidenceCategory": "AML records", "prompt": "Show the most recent independent test of your AML program: who performed it, how their independence and knowledge were established, what it covered and how each issue was tracked to closure.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "A 2023 staff risk alert reported broker-dealers that could not demonstrate timely testing, tests that did not cover parts of the business or were performed by people who were not independent or lacked knowledge of the requirements, and issues from testing that were not timely addressed. The 2027 priorities list adequately conducting independent testing among the AML areas reviewed.", "status": "known", "sourceIds": [ "src-sec-ra-bd-aml-2023", "src-sec-priorities-2027-bd-aml" ], "evidenceLocators": [ "Section I, independent testing observations", "Section III.D" ] }, "evidenceCues": [], "followUps": [ "How was the scope of the test matched to changes in the business since the previous test?" ], "applicability": "Broker-dealers examined by the SEC Division of Examinations.", "exclusions": "Self-regulatory organization rules are not covered by this toolkit.", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-sec-ra-bd-aml-2023", "src-sec-priorities-2027-bd-aml" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "q-msb-registration-agents", "audiences": [ "Money services businesses" ], "regulator": "FinCEN", "jurisdiction": "United States (federal)", "topic": "MSB registration", "evidenceCategory": "Registration records", "prompt": "Show your current FinCEN registration, the date the next renewal is due under your own calendar, and the agent list you maintain as part of registration.", "authoredBy": "Taft", "provenance": "original-practice", "relevance": { "text": "The registration rule says each money services business, with stated exceptions, must register with FinCEN and must maintain a list of its agents as part of its registration.", "status": "known", "sourceIds": [ "src-31cfr-1022-380-a" ], "evidenceLocators": [ "§ 1022.380(a)(1)" ] }, "evidenceCues": [], "followUps": [ "Which exception, if any, do you rely on, and where is that analysis written down?" ], "applicability": "Money services businesses as defined in 31 CFR 1010.100(ff). Whether a firm is an MSB is a perimeter question the firm answers with its advisers.", "exclusions": "Agents of another MSB are addressed separately in the rule.", "nonOfficialLabel": "Taft practice question: not an official regulator question.", "sourceIds": [ "src-31cfr-1022-380-a" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } } ], "deadlines": [ { "id": "dl-ria-adv-annual-updating-amendment", "obligationTitle": "Form ADV annual updating amendment", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers" ], "obligationCategory": "Filing", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 275.204-1(a)(1)", "applicability": { "text": "Advisers that file Form ADV with the SEC. Parts 1 and 2 are amended at least annually; Part 3 at the frequency the form instructions require.", "status": "known", "sourceIds": [ "src-17cfr-275-204-1" ], "evidenceLocators": [ "§ 275.204-1(a)" ] }, "exclusions": [], "deadlineType": "event-relative", "officialText": "At least annually, within 90 days of the end of your fiscal year", "fixedDate": null, "recurrenceText": null, "triggerText": "The end of the adviser's fiscal year.", "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states 90 days and does not say business or calendar days, so no period value is recorded here.", "More frequent amendments are required where the Form ADV instructions say so." ], "status": "active", "sourceIds": [ "src-17cfr-275-204-1" ], "locators": [ "§ 275.204-1(a)(1)(i)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ria-annual-compliance-review", "obligationTitle": "Annual review of compliance policies and procedures", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers" ], "obligationCategory": "Program review", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 275.206(4)-7(b)", "applicability": { "text": "Investment advisers registered or required to be registered under section 203 of the Advisers Act.", "status": "known", "sourceIds": [ "src-17cfr-275-206-4-7" ], "evidenceLocators": [ "§ 275.206(4)-7, introductory text" ] }, "exclusions": [], "deadlineType": "recurring", "officialText": "Review, no less frequently than annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation", "fixedDate": null, "recurrenceText": "No less frequently than annually. The rule sets no calendar date.", "triggerText": null, "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states the frequency in words; it does not state a number of months or a fixed date." ], "status": "active", "sourceIds": [ "src-17cfr-275-206-4-7" ], "locators": [ "§ 275.206(4)-7(b)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ria-code-initial-holdings-report", "obligationTitle": "Code of ethics: initial holdings report by a new access person", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers" ], "obligationCategory": "Personal trading reports", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 275.204A-1(b)(1)(ii)(A)", "applicability": { "text": "Access persons of an adviser registered or required to be registered with the SEC, under the adviser's code of ethics.", "status": "known", "sourceIds": [ "src-17cfr-275-204a-1-reports" ], "evidenceLocators": [ "§ 275.204A-1(b)(1)(ii)" ] }, "exclusions": [], "deadlineType": "event-relative", "officialText": "No later than 10 days after the person becomes an access person, and the information must be current as of a date no more than 45 days prior to the date the person becomes an access person.", "fixedDate": null, "recurrenceText": null, "triggerText": "The date the person becomes an access person.", "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states 10 days and 45 days without saying business or calendar days, so no period value is recorded here.", "The rule lists exceptions from reporting; confirm them in the rule text." ], "status": "active", "sourceIds": [ "src-17cfr-275-204a-1-reports" ], "locators": [ "§ 275.204A-1(b)(1)(ii)(A)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ria-code-annual-holdings-report", "obligationTitle": "Code of ethics: annual holdings report", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers" ], "obligationCategory": "Personal trading reports", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 275.204A-1(b)(1)(ii)(B)", "applicability": { "text": "Access persons of an adviser registered or required to be registered with the SEC, under the adviser's code of ethics.", "status": "known", "sourceIds": [ "src-17cfr-275-204a-1-reports" ], "evidenceLocators": [ "§ 275.204A-1(b)(1)(ii)" ] }, "exclusions": [], "deadlineType": "recurring", "officialText": "At least once each 12-month period thereafter on a date you select, and the information must be current as of a date no more than 45 days prior to the date the report was submitted.", "fixedDate": null, "recurrenceText": "At least once each 12-month period, on a date the adviser selects.", "triggerText": null, "publishedPeriod": { "value": 12, "unit": "months", "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The information must be current as of a date no more than 45 days before the report is submitted." ], "status": "active", "sourceIds": [ "src-17cfr-275-204a-1-reports" ], "locators": [ "§ 275.204A-1(b)(1)(ii)(B)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ria-code-quarterly-transaction-report", "obligationTitle": "Code of ethics: quarterly transaction report", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers" ], "obligationCategory": "Personal trading reports", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 275.204A-1(b)(2)(ii)", "applicability": { "text": "Access persons of an adviser registered or required to be registered with the SEC, under the adviser's code of ethics.", "status": "known", "sourceIds": [ "src-17cfr-275-204a-1-reports" ], "evidenceLocators": [ "§ 275.204A-1(b)(2)" ] }, "exclusions": [], "deadlineType": "recurring", "officialText": "Each access person must submit a transaction report no later than 30 days after the end of each calendar quarter, which report must cover, at a minimum, all transactions during the quarter.", "fixedDate": null, "recurrenceText": "Each calendar quarter; the report is due no later than 30 days after the quarter ends.", "triggerText": null, "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states 30 days without saying business or calendar days, so no period value is recorded here.", "The rule lists exceptions from reporting; confirm them in the rule text." ], "status": "active", "sourceIds": [ "src-17cfr-275-204a-1-reports" ], "locators": [ "§ 275.204A-1(b)(2)(ii)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ria-books-records-retention", "obligationTitle": "Books and records: retention period for most required records", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers" ], "obligationCategory": "Records retention", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 275.204-2(e)(1)", "applicability": { "text": "Books and records required under paragraphs (a) to (c)(1)(i) and (c)(2) of the rule, with the exceptions the paragraph lists.", "status": "known", "sourceIds": [ "src-17cfr-275-204-2" ], "evidenceLocators": [ "§ 275.204-2(e)(1)" ] }, "exclusions": [ { "text": "Records made under paragraphs (a)(11), (a)(12)(i), (a)(12)(iii), (a)(13)(ii), (a)(13)(iii), (a)(16) and (a)(17)(i) follow other retention paragraphs of the rule.", "status": "known", "sourceIds": [ "src-17cfr-275-204-2" ], "evidenceLocators": [ "§ 275.204-2(e)(1)" ] } ], "deadlineType": "event-relative", "officialText": "shall be maintained and preserved in an easily accessible place for a period of not less than five years from the end of the fiscal year during which the last entry was made on such record, the first two years in an appropriate office of the investment adviser.", "fixedDate": null, "recurrenceText": null, "triggerText": "The end of the fiscal year during which the last entry was made on the record.", "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states the period in words (not less than five years), so no numeric period value is recorded here.", "The first two years in an appropriate office of the adviser.", "Other paragraphs of the rule set different periods for specific records." ], "status": "active", "sourceIds": [ "src-17cfr-275-204-2" ], "locators": [ "§ 275.204-2(e)(1)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ria-custody-account-statements", "obligationTitle": "Custody rule: qualified custodian account statements", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers" ], "obligationCategory": "Custody", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 275.206(4)-2(a)(3)", "applicability": { "text": "Investment advisers registered or required to be registered with the SEC under the Advisers Act that have custody of client funds or securities, for the clients whose funds or securities a qualified custodian maintains. The registration condition sits in the rule's introductory text, which is not quoted here.", "status": "known", "sourceIds": [ "src-17cfr-275-206-4-2" ], "evidenceLocators": [ "§ 275.206(4)-2, introductory text and (a)(3)" ] }, "exclusions": [], "deadlineType": "recurring", "officialText": "You have a reasonable basis, after due inquiry, for believing that the qualified custodian sends an account statement, at least quarterly, to each of your clients for which it maintains funds or securities", "fixedDate": null, "recurrenceText": "At least quarterly.", "triggerText": null, "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The obligation is a reasonable basis, after due inquiry, for believing the custodian sends the statements; the rule paragraph is quoted in full in the source passage." ], "status": "active", "sourceIds": [ "src-17cfr-275-206-4-2" ], "locators": [ "§ 275.206(4)-2(a)(3)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ria-custody-independent-verification", "obligationTitle": "Custody rule: independent verification by surprise examination", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers" ], "obligationCategory": "Custody", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 275.206(4)-2(a)(4)", "applicability": { "text": "Investment advisers registered or required to be registered with the SEC under the Advisers Act that have custody of client funds or securities, except as the rule provides. The registration condition sits in the rule's introductory text, which is not quoted here.", "status": "known", "sourceIds": [ "src-17cfr-275-206-4-2" ], "evidenceLocators": [ "§ 275.206(4)-2, introductory text and (a)(4)" ] }, "exclusions": [ { "text": "The paragraph itself says except as provided below; the rule's exceptions are not reproduced here and need to be read in the rule.", "status": "known", "sourceIds": [ "src-17cfr-275-206-4-2" ], "evidenceLocators": [ "§ 275.206(4)-2(a)(4)" ] } ], "deadlineType": "recurring", "officialText": "The client funds and securities of which you have custody are verified by actual examination at least once during each calendar year, except as provided below, by an independent public accountant", "fixedDate": null, "recurrenceText": "At least once during each calendar year, at a time the accountant chooses without prior notice and that is irregular from year to year.", "triggerText": null, "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "A written agreement with the accountant is required; the rule's further conditions on the agreement are not reproduced here." ], "status": "active", "sourceIds": [ "src-17cfr-275-206-4-2" ], "locators": [ "§ 275.206(4)-2(a)(4)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-iim-form-13f", "obligationTitle": "Form 13F quarterly report", "regulator": "SEC", "jurisdiction": "United States (federal)", "audiences": [ "Institutional investment managers" ], "obligationCategory": "Filing", "legalStatus": "binding-rule", "instrumentCitation": "17 CFR 240.13f-1(a)(1)", "applicability": { "text": "Institutional investment managers exercising investment discretion over accounts holding section 13(f) securities with an aggregate fair market value of at least $100,000,000 on the last trading day of any month of any calendar year.", "status": "known", "sourceIds": [ "src-17cfr-240-13f-1" ], "evidenceLocators": [ "§ 240.13f-1(a)(1)" ] }, "exclusions": [], "deadlineType": "recurring", "officialText": "shall file a report on Form 13F (§ 249.325 of this chapter) with the Commission within 45 days after the last day of such calendar year and within 45 days after the last day of each of the first three calendar quarters of the subsequent calendar year.", "fixedDate": null, "recurrenceText": "Within 45 days after the last day of the calendar year, and within 45 days after the last day of each of the first three calendar quarters of the following year.", "triggerText": null, "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states 45 days without saying business or calendar days, so no period value is recorded here.", "Section 13(f) securities are defined in paragraph (c) of the rule." ], "status": "active", "sourceIds": [ "src-17cfr-240-13f-1" ], "locators": [ "§ 240.13f-1(a)(1)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-msb-registration-initial", "obligationTitle": "MSB registration: initial registration form", "regulator": "FinCEN", "jurisdiction": "United States (federal)", "audiences": [ "Money services businesses" ], "obligationCategory": "Registration", "legalStatus": "binding-rule", "instrumentCitation": "31 CFR 1022.380(b)(3)", "applicability": { "text": "Each money services business required to register with FinCEN, with the exceptions for agents and certain sellers of prepaid access stated in the rule.", "status": "known", "sourceIds": [ "src-31cfr-1022-380-a" ], "evidenceLocators": [ "§ 1022.380(a)(1)" ] }, "exclusions": [ { "text": "A person that is an MSB solely as an agent of another MSB is addressed by paragraph (a)(3) of the rule.", "status": "known", "sourceIds": [ "src-31cfr-1022-380-a" ], "evidenceLocators": [ "§ 1022.380(a)(1)" ] } ], "deadlineType": "event-relative", "officialText": "The registration form for the initial registration period must be filed on or before the end of the 180-day period beginning on the day following the date the business is established.", "fixedDate": null, "recurrenceText": null, "triggerText": "The day following the date the business is established.", "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states a 180-day period without saying business or calendar days, so no period value is recorded here.", "FinCEN's registration guidance page describes the same filing as within 180 days after the date on which the MSB is established." ], "status": "active", "sourceIds": [ "src-31cfr-1022-380-b", "src-31cfr-1022-380-a", "src-fincen-msb-registration-page" ], "locators": [ "§ 1022.380(b)(3)", "§ 1022.380(a)(1)", "Introductory text" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-msb-registration-renewal", "obligationTitle": "MSB registration: renewal", "regulator": "FinCEN", "jurisdiction": "United States (federal)", "audiences": [ "Money services businesses" ], "obligationCategory": "Registration", "legalStatus": "binding-rule", "instrumentCitation": "31 CFR 1022.380(b)(2) and (b)(3)", "applicability": { "text": "Registered money services businesses, for each renewal period after the initial registration period.", "status": "known", "sourceIds": [ "src-31cfr-1022-380-b" ], "evidenceLocators": [ "§ 1022.380(b)(2)" ] }, "exclusions": [], "deadlineType": "recurring", "officialText": "The registration form for a renewal period must be filed on or before the last day of the calendar year preceding the renewal period.", "fixedDate": null, "recurrenceText": "Each two-calendar-year renewal period; the form is due on or before the last day of the calendar year preceding that period.", "triggerText": null, "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The initial registration period is the two-calendar-year period beginning with the calendar year in which the business is first required to be registered.", "FinCEN's guidance page states that registration must be renewed every two years.", "Events requiring re-registration are set out in the next paragraph of the rule and are not reproduced here." ], "status": "active", "sourceIds": [ "src-31cfr-1022-380-b", "src-fincen-msb-registration-page" ], "locators": [ "§ 1022.380(b)(2) and (b)(3)", "Introductory text" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ctr-filing", "obligationTitle": "Currency transaction report filing", "regulator": "FinCEN", "jurisdiction": "United States (federal)", "audiences": [ "Money services businesses", "Broker-dealers" ], "obligationCategory": "BSA reporting", "legalStatus": "binding-rule", "instrumentCitation": "31 CFR 1010.306(a)(1)", "applicability": { "text": "Financial institutions filing a report required by 31 CFR 1010.311 or 1021.311.", "status": "known", "sourceIds": [ "src-31cfr-1010-306" ], "evidenceLocators": [ "§ 1010.306(a)(1)" ] }, "exclusions": [], "deadlineType": "event-relative", "officialText": "shall be filed by the financial institution within 15 days following the day on which the reportable transaction occurred.", "fixedDate": null, "recurrenceText": null, "triggerText": "The day on which the reportable transaction occurred.", "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states 15 days without saying business or calendar days, so no period value is recorded here.", "A copy of each report is retained for five years from the date of the report." ], "status": "active", "sourceIds": [ "src-31cfr-1010-306" ], "locators": [ "§ 1010.306(a)(1) and (a)(2)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-msb-sar-filing", "obligationTitle": "Suspicious activity report filing by a money services business", "regulator": "FinCEN", "jurisdiction": "United States (federal)", "audiences": [ "Money services businesses" ], "obligationCategory": "BSA reporting", "legalStatus": "binding-rule", "instrumentCitation": "31 CFR 1022.320(b)(3)", "applicability": { "text": "Money services businesses subject to the suspicious activity reporting section.", "status": "known", "sourceIds": [ "src-31cfr-1022-320" ], "evidenceLocators": [ "§ 1022.320(b)(3)" ] }, "exclusions": [], "deadlineType": "event-relative", "officialText": "A money services business subject to this section is required to file each SAR no later than 30 calendar days after the date of the initial detection by the money services business of facts that may constitute a basis for filing a SAR under this section.", "fixedDate": null, "recurrenceText": null, "triggerText": "The date of the initial detection of facts that may constitute a basis for filing a SAR.", "publishedPeriod": { "value": 30, "unit": "calendar-days", "businessOrCalendar": "calendar" }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "Situations requiring immediate attention call for immediate notification of law enforcement under the same paragraph; read the rule text." ], "status": "active", "sourceIds": [ "src-31cfr-1022-320" ], "locators": [ "§ 1022.320(b)(3)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-bd-sar-filing", "obligationTitle": "Suspicious activity report filing by a broker-dealer", "regulator": "FinCEN", "jurisdiction": "United States (federal)", "audiences": [ "Broker-dealers" ], "obligationCategory": "BSA reporting", "legalStatus": "binding-rule", "instrumentCitation": "31 CFR 1023.320(b)(3)", "applicability": { "text": "Brokers or dealers in securities subject to the suspicious activity reporting section.", "status": "known", "sourceIds": [ "src-31cfr-1023-320" ], "evidenceLocators": [ "§ 1023.320(b)(3)" ] }, "exclusions": [], "deadlineType": "event-relative", "officialText": "A SAR shall be filed no later than 30 calendar days after the date of the initial detection by the reporting broker-dealer of facts that may constitute a basis for filing a SAR under this section. If no suspect is identified on the date of such initial detection, a broker-dealer may delay filing a SAR for an additional 30 calendar days to identify a suspect, but in no case shall reporting be delayed more than 60 calendar days after the date of such initial detection.", "fixedDate": null, "recurrenceText": null, "triggerText": "The date of the initial detection of facts that may constitute a basis for filing a SAR.", "publishedPeriod": { "value": 30, "unit": "calendar-days", "businessOrCalendar": "calendar" }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "Where no suspect is identified on the date of initial detection, filing may be delayed for an additional 30 calendar days, and never more than 60 calendar days after initial detection." ], "status": "active", "sourceIds": [ "src-31cfr-1023-320" ], "locators": [ "§ 1023.320(b)(3)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-bsa-records-retention", "obligationTitle": "Bank Secrecy Act records: retention period", "regulator": "FinCEN", "jurisdiction": "United States (federal)", "audiences": [ "Money services businesses", "Broker-dealers" ], "obligationCategory": "Records retention", "legalStatus": "binding-rule", "instrumentCitation": "31 CFR 1010.430(d)", "applicability": { "text": "All records required to be retained by chapter X of the Bank Secrecy Act regulations.", "status": "known", "sourceIds": [ "src-31cfr-1010-430" ], "evidenceLocators": [ "§ 1010.430(d)" ] }, "exclusions": [], "deadlineType": "event-relative", "officialText": "All records that are required to be retained by this chapter shall be retained for a period of five years.", "fixedDate": null, "recurrenceText": null, "triggerText": "Paragraph (d) states a five-year period but does not state when it begins. The provisions elsewhere in chapter X that require a specific record state their own start points (for example, from the date a suspicious activity report is filed, or from the date of a currency transaction report); read the provision that requires the record.", "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": null, "effectiveTo": null, "conditions": [ "The rule states the period in words (five years), so no numeric period value is recorded here.", "Records kept under an order issued under § 1010.370 of the same chapter are retained for the period the order specifies, not to exceed five years.", "Records must be stored so as to be accessible within a reasonable period of time." ], "status": "active", "sourceIds": [ "src-31cfr-1010-430" ], "locators": [ "§ 1010.430(d)" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } }, { "id": "dl-ria-aml-rule-effective-date", "obligationTitle": "Investment adviser AML/CFT program and SAR rule: delayed effective date", "regulator": "FinCEN", "jurisdiction": "United States (federal)", "audiences": [ "SEC-registered investment advisers", "Exempt reporting advisers" ], "obligationCategory": "Effective date", "legalStatus": "binding-rule", "instrumentCitation": "91 FR 36 (final rule delaying the effective date of 89 FR 72156)", "applicability": { "text": "Investment advisers covered by the rule published September 4, 2024, at 89 FR 72156, as described in that rule.", "status": "known", "sourceIds": [ "src-fr-2025-24184" ], "evidenceLocators": [ "DATES" ] }, "exclusions": [], "deadlineType": "fixed", "officialText": "As of December 31, 2025, the effective date of the rule published September 4, 2024, at 89 FR 72156 is delayed until January 1, 2028. This rule is effective January 1, 2028.", "fixedDate": "2028-01-01", "recurrenceText": null, "triggerText": null, "publishedPeriod": { "value": null, "unit": null, "businessOrCalendar": null }, "effectiveFrom": "2028-01-01", "effectiveTo": null, "conditions": [ "In the final rule's background, FinCEN recounts that in its September 2025 proposal it assessed that delaying the effective date would give it an opportunity to review the rule and, as applicable, ensure it is effectively tailored. Confirm the current status before relying on this date.", "A FinCEN proposed rule on AML/CFT programs published in April 2026 states that it does not propose any amendments to the adviser rule and describes that rule as delayed until January 1, 2028. A proposal changes nothing until it is finalized.", "The underlying program and reporting obligations are set out in the 2024 rule and are not reproduced here." ], "status": "active", "sourceIds": [ "src-fr-2025-24184", "src-fr-2026-07033" ], "locators": [ "DATES; Section II.B, Background (IA AML Effective Date NPRM)", "Section I, Executive Summary, note on the investment adviser rule" ], "lastChecked": "2026-11-09", "review": { "status": "unreviewed", "approvedAt": null, "revisionHash": null } } ], "changelog": [] }