Month: January 2018

Advisers

FYI: FINRA FAQs on Exploitation of Vulnerable Adults

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FYI: FINRA has posted FAQs addressing new FINRA Rule 2165 (Financial Exploitation of Specified Adults), and amendments made to FINRA Rule 4512 (Customer Account Information), both of which become effective February 5, 2018. Among the more controversial aspects of Rule 2165 is the safe harbor it provides BD member firms to place a temporary “hold” on a disbursement of customer funds or securities from the account of a specified adult if the member reasonably believes that financial exploitation of the specified adult has occurred, is occurring, has been attempted or will be attempted. Among other things, the FAQs clarify that […]

Advisers

FYI: IAA FAQs on Adviser Custody

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FYI: The Investment Adviser Association (IAA) has issued publicly available FAQs addressing SLOAs (Standing Letters of Authorization), transfers between client accounts and related matters under the Advisers Act custody rule. The IAA FAQs aim to address residual questions that existed in the aftermath of the SEC staff’s own custody FAQs issued on February 21, 2017, relating to those topics, and a custody no-action letter issued to the IAA that same day. Advisers that are determined to have “custody” under SLOA, account transfer or similar arrangements must not only comply with the custody rule (which, depending on the circumstances, may require […]

Advisers

FYI: Investment Company LRM (Liquidity Risk Management) FAQs Issued

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FYI: The SEC Division of Investment Management has issued FAQs addressing issues under the investment company LRM (Liquidity Risk Management) program rules that require funds to classify their holdings by liquidity and report their position-level liquidity classifications on Form N-PORT. Even though prior SEC action delayed the Form N-PORT reporting date for larger funds (see my FYI post dated December 8, 2017), those funds are still required to adopt liquidity programs and maintain in their records the information that is required to be included in Form N-PORT beginning no later than July 30, 2018. As such, the FAQs will be […]