Advisers

FYI: Risk Alert on Privacy Practices for IAs and BDs; Also, BD Outreach Announced

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FYI: OCIE issued a Risk Alert listing examples of the most common deficiencies or weaknesses identified in IA and BD examinations under the Reg. S-P privacy rules, more specifically the privacy notice requirements and the Safeguards Rule, which requires registrants to adopt written policies and procedures that address administrative, technical and physical safeguards for the protection of customer records and information. As has become an increasingly common feature of OCIE Risk Alerts, the deficiencies listed in the Alert cover almost every aspect of the relevant rule requirements. For example, firms were found: • not providing required privacy and opt-out notices, […]

Funds

FYI: New Rule 485(a) Automatic Effectiveness Practices

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FYI: The Division of Investment Management’s Office of Disclosure Review and Accounting is urging funds filing registration statements under the automatic effectiveness rules (Rule 485(a)) to follow certain new practices when making filings that raise complex issues or issues of first impression not easily resolved because of a lack of precedent, such as novel investment strategies, fee structures and/or operational policies (for example, significant changes to policies related to purchases and redemptions by investors). Although most filings that seek automatic effectiveness under Rule 485(a) do not raise these types of unique or novel issues, the staff is urging registrants with […]