Yesterday, the Office of Compliance Inspections and Examinations issued a risk alert related to COVID-19 compliance risks ("Risk Alert"). 1 The Risk Alert applies to both investment advisers and broker-dealers and highlights six categories of compliance risk:
- Protection of investors' assets;
- Supervision of personnel;
- Practices relating to fees, expenses, and financial transactions;
- Investment fraud;
- Business continuity; and
- Protection of investor and other sensitive information.
If you have questions about the Risk Alert, COVID-19 relief, or the regulation of investment advisers or broker-dealers, please feel free to contact us.
By the Investment Management and Broker-Dealer Team at Kilpatrick Townsend & Stockton
1 SEC Office of Compliance Inspections and Examinations, Select COVID-19 Compliance Risks and Considerations for Broker-Dealers and Investment Advisers (August 12, 2020), available at https://www.sec.gov/files/Risk%20Alert%20-%20COVID-19%20Compliance.pdf.Office of Compliance Inspections and Examinations
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