Office of the Federal Register, eCFR, 17 CFR 275.206(4)-7 Compliance procedures and practices. rule. § 275.206(4)-7, introductory text and paragraphs (a) to (c).
https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.206(4)-7
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 17 CFR 275.204-1 Amendments to Form ADV. rule. § 275.204-1(a).
https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.204-1
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 17 CFR 275.204A-1 Investment adviser codes of ethics. rule. § 275.204A-1(b)(1)(ii) and (b)(2)(ii).
https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.204A-1
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 17 CFR 275.204-2 Books and records to be maintained by investment advisers. rule. § 275.204-2(e)(1).
https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.204-2
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 17 CFR 275.206(4)-2 Custody of funds or securities of clients by investment advisers. rule. § 275.206(4)-2(a)(3) and (a)(4).
https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.206(4)-2
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 17 CFR 240.13f-1 Reporting by institutional investment managers of information with respect to accounts over which they exercise investment discretion. rule. § 240.13f-1(a)(1).
https://www.ecfr.gov/current/title-17/chapter-II/part-240/section-240.13f-1
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 31 CFR 1022.380 Registration of money services businesses. rule. § 1022.380(a)(1).
https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1022/section-1022.380
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 31 CFR 1022.380 Registration of money services businesses. rule. § 1022.380(b)(2) and (b)(3).
https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1022/section-1022.380
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 31 CFR 1010.306 Filing of reports. rule. § 1010.306(a)(1) and (a)(2).
https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1010/section-1010.306
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 31 CFR 1022.320 Reports by money services businesses of suspicious transactions. rule. § 1022.320(b)(3).
https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1022/section-1022.320
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 31 CFR 1023.320 Reports by brokers or dealers in securities of suspicious transactions. rule. § 1023.320(b)(3).
https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1023/section-1023.320
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register, eCFR, 31 CFR 1010.430 Nature of records and retention period. rule. § 1010.430(d).
https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1010/section-1010.430
Checked 2026-11-09.
Supporting 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.
Office of the Federal Register (Financial Crimes Enforcement Network final rule), 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. official release. DATES section and Section II.B, Background (IA AML Effective Date NPRM).
https://www.federalregister.gov/documents/2026/01/02/2025-24184/delaying-the-effective-date-of-the-anti-money-launderingcountering-the-financing-of-terrorism
Checked 2026-11-09; published 2026-01-02; effective 2028-01-01.
Supporting 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.
Office of the Federal Register (Financial Crimes Enforcement Network proposed rule), Anti-Money Laundering and Countering the Financing of Terrorism Programs (proposed rule), 91 FR 18704. official release. Section I, Executive Summary, note on the investment adviser rule.
https://www.federalregister.gov/documents/2026/04/10/2026-07033/anti-money-laundering-and-countering-the-financing-of-terrorism-programs
Checked 2026-11-09; published 2026-04-10.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Fiscal Year 2027 Examination Priorities (staff statement). regulator guidance. Section I.B, Compliance Programs, page 6.
https://www.sec.gov/files/2027-exam-priorities.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Fiscal Year 2027 Examination Priorities (staff statement). regulator guidance. Section I.A, Fiduciary Standards of Conduct, page 5.
https://www.sec.gov/files/2027-exam-priorities.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Fiscal Year 2027 Examination Priorities (staff statement). regulator guidance. Section I.C, Never-Examined Advisers and Recently Registered Advisers, page 7.
https://www.sec.gov/files/2027-exam-priorities.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Fiscal Year 2027 Examination Priorities (staff statement). regulator guidance. Section I.A, Fiduciary Standards of Conduct, page 6.
https://www.sec.gov/files/2027-exam-priorities.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Fiscal Year 2027 Examination Priorities (staff statement). regulator guidance. Section III.D, Anti-Money Laundering (AML), page 8.
https://www.sec.gov/files/2027-exam-priorities.pdf
Checked 2026-11-09.
Supporting 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;
U.S. Securities and Exchange Commission, Division of Examinations, Fiscal Year 2027 Examination Priorities (staff statement). regulator guidance. Section VII.A.1, Cybersecurity, page 12.
https://www.sec.gov/files/2027-exam-priorities.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Fiscal Year 2027 Examination Priorities (staff statement). regulator guidance. Section VII.A.2, Emerging Financial Technology, page 12.
https://www.sec.gov/files/2027-exam-priorities.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Fiscal Year 2027 Examination Priorities (staff statement). regulator guidance. Section VII.A.3, Regulation S-ID and Regulation S-P, page 12.
https://www.sec.gov/files/2027-exam-priorities.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, The SEC Exam Handbook: A Practical Guide on Process and Engagement (staff statement). regulator guidance. Information Requests, page 4.
https://www.sec.gov/files/exam-handbook.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, The SEC Exam Handbook: A Practical Guide on Process and Engagement (staff statement). regulator guidance. Examination Outcomes, page 9.
https://www.sec.gov/files/exam-handbook.pdf
Checked 2026-11-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Examinations Observations Regarding Investment Adviser Annual Compliance Reviews (staff statement). regulator guidance. Section I, Introduction, pages 1 to 2.
https://www.sec.gov/files/examinations-observations-regarding-investment-adviser-annual-compliance-review-091426.pdf
Checked 2026-11-09; published 2026-09-14.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Examinations Observations Regarding Investment Adviser Annual Compliance Reviews (staff statement). regulator guidance. Section II, Conducting timely annual reviews, pages 1 to 2.
https://www.sec.gov/files/examinations-observations-regarding-investment-adviser-annual-compliance-review-091426.pdf
Checked 2026-11-09; published 2026-09-14.
Supporting 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).
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Examinations Observations of Investment Adviser Obligations Related to Economic Conflicts of Interest (staff statement). regulator guidance. Section I, Introduction, pages 1 to 2.
https://www.sec.gov/files/observations-ia-obligations-related-economic-conflicts-interest-060926.pdf
Checked 2026-11-09; published 2026-06-09.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Investment Advisers: Assessing Risks, Scoping Examinations, and Requesting Documents (staff statement). regulator guidance. Attachment, Typical Initial Information Examiners Request of Investment Advisers: Compliance Program and Oversight Process; Valuation; Information Processing, Reporting, and Protection.
https://www.sec.gov/files/risk-alert-ia-risk-and-requesting-documents-090623.pdf
Checked 2026-11-09; published 2023-09-06.
Supporting 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).
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Investment Advisers: Assessing Risks, Scoping Examinations, and Requesting Documents (staff statement). regulator guidance. Attachment, Typical Initial Information Examiners Request of Investment Advisers: Conflicts of Interest and Insider Trading; Marketing and Advertising; Custody.
https://www.sec.gov/files/risk-alert-ia-risk-and-requesting-documents-090623.pdf
Checked 2026-11-09; published 2023-09-06.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Observations from Anti-Money Laundering Compliance Examinations of Broker-Dealers (staff statement). regulator guidance. Section I, independent testing observations, pages 3 to 4.
https://www.sec.gov/files/risk-alert-aml-compliance-examinations-bd-073123.pdf
Checked 2026-11-09; published 2023-07-31.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Observations from Examinations of Newly-Registered Advisers (staff statement). regulator guidance. Staff Observations, Compliance Policies and Procedures, pages 3 to 4.
https://www.sec.gov/files/risk-alert-newly-registered-ias-032723.pdf
Checked 2026-11-09; published 2023-03-27.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Observations from Examinations of Newly-Registered Advisers (staff statement). regulator guidance. Staff Observations, Disclosure Documents and Filings, page 4.
https://www.sec.gov/files/risk-alert-newly-registered-ias-032723.pdf
Checked 2026-11-09; published 2023-03-27.
Supporting 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;
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Observations from Examinations of Private Fund Advisers (staff statement). regulator guidance. Section III.C, Due Diligence.
https://www.sec.gov/files/private-fund-risk-alert-pt-2.pdf
Checked 2026-11-09; published 2022-01-27.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Safeguarding Customer Records and Information at Branch Offices (staff statement). regulator guidance. Section III, Common Issues Related to Branch Office Governance, Vendor Management.
https://www.sec.gov/files/risk-alert-safeguarding-info-branch-offices-042623.pdf
Checked 2026-11-09; published 2023-04-26.
Supporting 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.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Additional Observations Regarding Advisers' Compliance with the Advisers Act Marketing Rule (staff statement). regulator guidance. Section II.A, Observations Related to the Testimonials and Endorsements Provisions.
https://www.sec.gov/files/exams-riskalert-mrkt-rule-2512-508.pdf
Checked 2026-11-09; published 2025-12-16.
Supporting 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.
Financial Crimes Enforcement Network, Money Services Business (MSB) Registration. regulator guidance. Introductory text and Regulation Fact Sheet note.
https://www.fincen.gov/resources/money-services-business-msb-registration
Checked 2026-11-09.
Supporting 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.
