Published on Jan 19th, 2023 |

Vigilant Insights

Brief Introduction

The SEC charged close to $6.4 billion to firms and individuals in 2022, a record setting number.

Maximum penalties are being pursued by the enforcement division.

This rapid increase in regulatory activity has forced the compliance department within firms to take on a proactive approach to compliance.

Who Is This Applicable To?

Who Is This Applicable To?

  • Registered Investment Advisers (RIAs)
  • FINRA Registered Broker Dealers
  • Mutual Funds
  • ETFs

What Is Happening?

What Is Happening?

  • SEC examinations are increasing and affecting all funds whether private or public.
  • Conflicts of interest, industry fees, and proper disclosures are a major focus for the SEC when dealing with private funds.
  • The new advertising rule, new enforcement of electronic communication recordkeeping, and outsourcing requirements will place significant burden on firms to have proper policies and procedures.
  • Firms are recognizing that they will be unsuccessful during examinations and have significant regulatory headaches if their compliance program is ad hoc.
  • The SEC is expanding its penalties to situations that could have created investor harm, even if no harm was demonstrated.
  • The SEC is going after individuals as well as firms for failing to meet the expectations of their office within the firm.

Vigilant's Final Conclusion

Vigilant’s Final Conclusion

These realities have caused significant expenditures in firm compliance in 2022.

Firms are scrambling to adjust to this new regulatory environment that penalizes inadvertent errors along with intentional misconduct.

As firms rush to fill their compliance gaps, many are seeking outside help due to the benefits and cost efficiency provided by compliance firms with significant industry experience and their finger on the pulse of the regulatory environment.

With clients all cross the globe, Vigilant is prepared with an extensive list of compliance support solutions to help your department be successful.

Schedule A Call With Vigilant Here If You Are In Need Of Compliance Assistance