Compliance with federal and state securities laws has always been a critical aspect of an RIA’s business. Without an effective compliance program, your clients’ assets may be at risk, and your firm could be shuttered by the regulators.

The fraudulent activities that paralyzed the financial system have increased the regulatory scrutiny across the board. The SEC and state regulators are committed to ensure compliance with their rules and regulations. In 2012, there is an expectation that there trend of increasing onsite and remote regulatory exams will continue.

With the adoption of Rule 206(4)-7 of the Investment Advisers Act of 1940, RIAs are required to develop and implement a compliance program that is effective in mitigating any potential violations of the securities laws. Rule 206(4)-7, also known as the “CCO Rule”, make your Chief Compliance Officer personally accountable to having an effective compliance program in place and, at least annually, assessing the effectiveness of the program.

The annual assessment of adequacy means looking at the policies and procedures to make sure they still fit the nature of the business you are conducting. Have you changed the way you are doing business? Have you outsourced some of your operations to a third party provider? Have changes to the rules and regulations been incorporated into your policies and procedures?

The annual review of effectiveness means testing the implementation of the policies and procedures to ensure that employees, outsourced service providers, and any other person or entity involved in supporting your business is doing so in accordance with your compliance program and the securities laws.

At AdvisorAssist, our experienced compliance and industry professionals will design your compliance programs customized to your unique business model. We will ensure that the compliance program is not only comprehensive, but reflective of your business.

As part of the Compliance Advantage™ service, AdvisorAssist can design, implement, and maintain your compliance program. In some instances, we may also assume a deeper outsourced role to help you manage your growth.

If you would like to learn how we can help with the design, maintenance or testing of your compliance program, contact us by filling out the form to the right or calling us at 866.513.4042.